According to The Wall Street Journal report, Fidelity is considering allowing its clients to trade cryptocurrencies, including Bitcoin. This report is being produced at a time when Wall Street is still interested in the cryptocurrency industry despite having a financially challenging year.
Retail investors will soon trade in Bitcoin
In a keynote at the SALT Conference on September 12, Galaxy Digital CEO Mike Novogratz projected that Fidelity’s Bitcoin business would soon expand to retail.
“A bird told me that Fidelity, a little bird in my ear, is going to shift their retail customers into crypto soon enough,” he said. “I hope that bird is right. And so we are seeing this institutional march.”
The announcement sparked considerable enthusiasm on Twitter. Michael Saylor, Executive Chairman of Microstrategy, stated that Bitcoin is “coming to 34 million Fidelity accounts.” Fidelity has not yet informed its clients of its plans.
The offering is technically not confirmed because Fidelity has not yet informed its clients of such information. On social media, however, there have been rumours about the product since last week; some claim it will be available in November.
Others were less convinced. “The fundamental question is, will Fidelity allow withdrawals?” prominent Bitcoiner Namcios tweeted, emphasising the necessity of self-custody. “If not, Bitcoin IOUs,” he continued.
Fidelity 401(k) Plan
Fidelity announced plans to let its corporate clients add bitcoin to the 401(k) accounts it oversees for them earlier this year. These clients might now have access to direct Bitcoin trading. The move by businesses to permit their employees to invest in cryptocurrencies through their Fidelity retirement plans has drawn criticism from the U.S. Department of Labor. The scheme has also drawn criticism from a number of U.S. senators, who point to the dangers of investing savings in such hazardous investments.
Market makers Citadel Securities and Virtu Financial Inc. were constructing a cryptocurrency trading platform with Fidelity and fellow retail stockbroker Charles Schwab Corp., according to people with knowledge of the situation in June.
After Fidelity revealed their 401(k) intentions in the wake of the collapse of the Terra stablecoin ecosystem, cryptocurrency values immediately fell. This year, Bitcoin has fallen by around 50%, and several so-called “altcoins” have fallen even more.
Creation Of Fidelity Digital Asset Services
On October 15, 2018, Fidelity Investments, one of the largest financial services companies in the world with approximately $9.9 trillion in client assets (as of June 30, 2022), announced the creation of a new company, Fidelity Digital Asset Services, which would provide institutional investors (such as “hedge funds, family offices, and market intermediaries”) with “enterprise-quality custody and trade execution services” for cryptocurrencies.
According to Fidelity Investments, Chairman and CEO, Abigail P. Johnson, the investment firm’s aim is to provide investor access to digitally native assets like bitcoin. Long-term, they have plans to invest in and experiment with ways to simplify this growing asset class for our clients’ comprehension and use.
According to coinmarketcap, Bitcoin price is $22,400.70 with a 24-hour trading volume of $47,155,705,890. Bitcoin is up 2.79% in the last 24 hours.