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Fidelity, the $2.5 trillion asset manager, announced Monday it’s stepping into the space. Fidelity currently manages $7.2 trillion in total assets and services over 27 million customers. The financial-services firm is known for retail-brokerage and 401(k) offerings and is one of the largest 403(b) retirement plan providers for not-for-profit institutions.
Starting out, Fidelity will only be open to professional traders and hedge fund. The first set of coins it will deal with are Bitcoin and Ethereum, who lead in market cap in the crypto world. However, it plans on adding more digital assets as the project develops further into the future.
“We started exploring blockchain and digital assets several years ago, and those efforts have been successful in helping us understand and advance our thinking around
cryptocurrencies […] The creation of Fidelity Digital Assets is the first step in a long-term vision to create a full-service enterprise-grade platform for digital assets.”
Cybersecurity will be the firms’ number-one priority in order to prevent hacks and to create a vaulted cold-storage solution for their clients. Fidelity also mentioned in its press release other points of focus, which include: Institutional-Grade Custody of Digital Assets, Trade Execution and Dedicated Client Service. Having one of the most well-known investing companies like Fidelity joining the cryptosphere is another sign that you should not sleep on Bitcoin as a potential long-term investment.
“No one said when some of these early stage Internet companies in 2000 were going out of business ‘gee the Internet is toast’. “We don’t focus too much on the price. It’s a foundational technology — people are trying to get exposure to the trend, and expect volatility in the assets themselves.” – Tom Jessop, CEO, Fidelity
With any new asset and market, maturity is formed when the infrastructure is built. Having one of the most well-known investment companies boarding the crypto train could be another telltale sign that Bitcoin isn’t something you should be brushing under the rug as it could prove, and in some cases already has, that it is a very serious long-term investment.
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