The company is one of the most important investment managers in the United States, $4.3 trillion Assets under management as of March 31.
Van de Poppe said what this means for the sector.
“Adoption is growing and accelerating. ”
Fidelity Bet Big With Bitcoin
Spurred by growing interest in Bitcoin, Fidelity launches subsidiary business Fidelity Digital Assets (FDA), October 2018, in response to growing institutional demand for cryptocurrencies.
“Our continued research supports our belief that Bitcoin is more than an asset. It represents the foundation of our business and the new financial system.”
The FDA was authorized under the New York Banking Act in 2019 and launched in Europe a year after being authorized to meet the growing global demand for digital assets.
The company offers institutional investors a range of solutions including cold storage, trade execution and settlement services.
Additionally, US Bitcoin Exchange Traded Funds (ETFs) have been continuously delayed or rejected by the SEC, but Fidelity Spot Bitcoin Exchange Trading Products (ETP) gave European professional investors exposure to BTC prices in February.
according to Lucifer, the terms ETP and ETF are used interchangeably. Like ETFs, ETPs are open-ended investments that are listed on an exchange, traded and settled like stocks.
“The general trend in both the market and the media is to use ETFs and ETPs as completely interchangeable terms.”
not everyone agrees
Fidelity announced plans in April to allow customers the option to invest in Bitcoin as part of their retirement savings plans.
The scheme will allow retirement savers to add up to 20% of their portfolio to BTC, and employers will be able to reduce this cap if needed.
The voice of opposition began with concerns from the U.S. Department of Labor about the product’s green light. A report on this issue drew attention to the “significant risks” involved.
“These investments pose significant risks and challenges to participants’ retirement accounts, including significant risk of fraud, theft and loss.”
More recently, Senators Elizabeth Warren, Richard Durbin, and Tina Smith Issue raised The matter is addressed in an open letter to Fidelity’s CEO.
They said Bitcoin is a “volatile, illiquid and speculative asset” and not suitable for retirement products.