Fidelity remains bullish on Bitcoin

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In 2022, bitcoin recorded its worst annual performance since 2018. Worse still, the collapse of crypto broker FTX, while not a direct commentary on bitcoin, drove many investors from the crypto arena.

However, some reputable financial services still see promise in bitcoin and the digital asset universe in general. This group includes brokerage and fund giant Fidelity. Last year, it began offering bitcoin service in 401(k) plans and expanded its capabilities in ethereum trading. It is the second largest digital asset behind bitcoin and it also just had its worst annual performance since 2018.

The Boston-based company also announced plans to add 500 crypto-related jobs by the end of Q1 2023. In theory, the timing of these moves is bad simply because of bitcoin’s decline in 2022 and the collapse of FTX, among other factors. , but Fidelity is playing the long game, and that could be constructive for the broader crypto universe.

For a company the size of Fidelitys, crypto isn’t likely to add much revenue. But Fidelity tends to gradually and persistently move into new areas. And it could benefit from the collapse of the industry, one of the few reputable companies investors could trust to hold and trade crypto, Carleton English reported for Barrons.

A Fidelity spokesperson told Barrons that a significant number of its current customers are already exposed, indicating the brokerage is in step with customer demand. While it’s unclear whether these customers are big or small crypto investors, the bitcoin bulls that are steadily nibbling the biggest cryptocurrency, also known as the prawn, are generally dedicated buyers and holders. long-term. Additionally, Fidelity’s crypto efforts could pay off over time.

More than 60% of investors believe digital assets have a place in their portfolios, and more than 80% are interested in institutional investment products that hold digital assets, according to the firm.

Fidelity shows crypto engagement in other ways. For example, the company added to its lineup of exchange-traded funds last year with the launches of the Fidelity Crypto Industry and Digital Payments (FDIG) ETF and the Fidelity Metaverse (FMET) ETF, both of which are crypto-related equity-based ETFs. space out. FMET, which tracks the Fidelity Metaverse Index, is relevant to this conversation because financial transactions in the metaverse are crypto-intensive.

For more news, insights and analysis, visit the Crypto Channel.

Opinions and predictions expressed herein are solely those of Tom Lydon and may not materialize. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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