Fidelity Investments Inc. began custody service for Bitcoin earlier this year in March 2019. The move suggested the increase in demand for ‘directly holding Bitcoin’ in institutional Bitcoins. Reportedly, Fidelity had conducted a survey from November 2018 to February 2019 among its 441 investors about their inclination towards Bitcoin and other cryptocurrencies.
According to reports, more than 72% of the people in the survey which included pension funds, family offices, hedge funds, and other fund managers prefer some or the kind of digital assets. Furthermore, 57% of them voted in favor of owning cryptocurrencies directly.
Fidelity Digital Assets
With the growing interest in Bitcoin and cryptocurrencies, the only hindrance to its paths is provided by incorrect ‘price discovery,’ and Exchange-related theft and other unforeseen issues. Hence, Fidelity Investments initiated the Digital Assets wing in October 2017 to provide products and services related to cryptocurrencies and blockchain.
Tom Jessops, the President of Fidelity Digital Assets noted:
“People are relying on the institutions they’ve done business with for a long time to fulfill their objectives and needs,” he said. “I’m not trying to throw shade on anybody else, but it’s up to the clients to decide.”
Fidelity has been testing the cryptocurrency waters as early as 2014 with research, Bitcoin mining initiative, charitable institutions, and has also implemented Proof of Concept (PoC) protocol to allow for seamless, transparent trading of assets.
Fidelity Digital Asset began accepting Ether (ETH) donations in September 2017. Ethereum has more often than not being dubbed as the next level of innovation after Bitcoin due to its smart contract platform.
Furthermore, looking at the increased preference of Fidelity investors in cryptocurrencies from the survey, it is indicative that Fidelity could soon add custody arrangements for Ethereum as well.
Jessops also added:
“More institutional investors are engaging with digital assets, either directly or through service providers, as the potential impact of blockchain technology on financial markets – new and old – becomes more readily apparent.”
The survey also reported that family offices and financial advisors were more inclined towards these digital assets than other Financial sectors.
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