In Brief:
- In a recent interview, A Spokesperson at Fidelity Digital Assets said that institutional interest in crypto is growing.
- The spokesperson said that 90 percent of Fidelity’s biggest clients were asking about Bitcoin.
Bitcoin has become the primary focus for the division of the digital assets of Fidelity Investments. In an interview with the Boston Globe, Christine Sandler, head of sales and marketing for Fidelity, said that the thing 90 percent of Fidelity’s biggest clients were asking about is Bitcoin.
Fidelity has been taking a plunge for a major play in the world of cryptocurrency for over 6 years. Fidelity’s plan to control the cryptocurrency market seems to be more ambitious than ever. The asset manager looks to provide more institutional pathways to digital assets.
Christine Sandler said that institutional interest in crypto is growing. For most investors, the primary entry into crypto has been Bitcoin.
When asked about supporting other altcoins Jessop responded, “I don’t think we’ll ever be the most full-service provider, in terms of asset coverage.” Fidelity currently mines and custodies Bitcoin for institutions for its “safety, soundness and security.”
Christine Sandler continued, “We’re dealing with the more traditional investors, and the entry vehicle to this space is largely bitcoin,” But she added that the interest for altcoins is “not anything close to what we see in bitcoin.”
Tom Jessop said the pandemic was a major instigator for investors to finally get into crypto:
“What really got people off the fence was the pandemic, because you’ve got this scarce asset class — there will only ever be 21 million bitcoin created — and an environment where our currency is being debased, and there’s a ton of money printing.”
Tom Jessop On Regulating Crypto:
Jessop is optimistic about the recent push to regulate Bitcoin. But he also voiced against over-regulation of the currency.
“We’re supportive of regulation,” he said, ”For this asset class to grow, and for investors to have trust in what we and others are doing, you need regulations commensurate with other asset classes. We’re not saying that it should be overregulated, but we think that it should be regulated consistent with other financial products that consumers and institutions purchase today.”
Bitcoin is the Key Focus Now:
Fidelity is highly focused on bitcoin. Up until earlier this year, says Christine Sandler, 90 percent of what Fidelity’s biggest clients were asking about was bitcoin.
“We’re dealing with the more traditional investors, and the entry vehicle to this space is largely bitcoin,” she says. But she adds that the interest for Ethereum, “has been escalating in the last few months, but it’s not anything close to what we see in bitcoin.”
Fidelity has been mining Bitcoin since 2015, and its operation now relies “predominantly on hydropower from Canada” and other renewables. The scale of Fidelity’s bitcoin mining operation is unknown, but it is reportedly small yet profitable.
Growing demand from clients to access crypto investment opportunities has been fueling the company’s crypto ambitions. Earlier last month, Fidelity Digital Assets was planning to increase its staff by about 70%. Major institutional funds and banks across the globe have been following a similar trend.
