Fidelity Declares A Major Focus on Bitcoin Investment Amid Soaring Client Demand

In an interview with Boston Globe on 17 Aug Tuesday, Massachusetts-based financial services corporation Fidelity Investments Inc announced that Bitcoin had become a significant focus of the company's digital asset division.

Christine Sandler, the current head of sales and marketing of Fidelity, indicated that nearly 90% of its most prominent customers are inquiring about bitcoin. Thus, not disappointing them, the company is taking long-term action on the emergence of new financial infrastructure around Bitcoin.

On the increasing adoption of Bitcoin, Sandler said, "The world's interest in Ethereum has also grown in recent months, but it is nothing close to what we see in bitcoin. We're dealing with the more traditional investors, and the entry vehicle to this space is largely bitcoin."

Same time Tom Jessop, president of the digital asset business unit at Fidelity, said, "You're seeing the emergence of a real asset class." When asked about the integration of altcoins on the platform, Jessop said, "I don't think we will ever be the most extensive service provider in terms of asset coverage." The firm presently mines and custodies Bitcoin for institutions for its "safety, soundness and security."

On institutions increasingly turning to Bitcoin for a sound hedge against inflation, Jessop commented, "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."

The company has been looking to expand itself in the crypto space for nearly six years now. Devonshire Investors, a firm's venture capital division, has funded various promising startups, including Boston-based Coin Metrics, ErisX, Talos, etc. This March, the company had applied for a Bitcoin ETF; though, the approval is still pending.

Established in 1946, Fidelity Investments has grown to becoming one of the largest asset managers in the world with $4.9 trillion in assets under management. As of June 2020 and a combined total customer asset value of $8.3 trillion.

In another news, Mike Novogratz’s Galaxy Digital has applied for a Bitcoin futures ETF with the U.S. Securities and Exchange Commission (SEC). Meaning, the exchange-traded fund will invest in BTC futures rather than investing directly in the asset class.

This comes, as the SEC Chairman hinted the approval of Bitcoin ETF linked to the BTC futures offered by the CME Group. There’s been a recent uptick in the Bitcoin ETF applications liked to Bitcoin Futures.