Showing posts with label fidelity. Show all posts
Showing posts with label fidelity. Show all posts

Fidelity Isn't The Only Company Wanting To Start A Bitcoin ETF - The Fierce Race To Be First...

Actually, it's not officially Fidelity's ETF, it would belong to a company called Wise Origin, and Fidelity Digital Assets will serve as the fund's custodian, storing Wise Origin's holdings. 

The ETF, called Wise Origin Bitcoin Trust, will aim to match an index that takes spot prices from various bitcoin markets, including popular exchanges, Fidelity said in a securities filing.

But now that their intent is public, they're becoming aware of how fierce competition to do be first will be...

Video Courtesy Of Yahoo Finance

Fidelity's cryptocurrency trading begins within "weeks" according to insider, and new details on what coins will (or won't) be offered at launch...

The cryptocurrency world has been a bit on edge since Fidelity announced their entry into the space - and for good reason. 

They're quite literally a financial giant, holding more American's 401k plans than any other company, administering more than $7 trillion in customer assets, employing over 40,000 people, and have 190+ offices across the United States.

On the record, in an e-mail to Bloomberg, spokesperson Arlene Roberts says the plan is to "...continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors."

However, an insider who asked to remain unnamed used verbiage that sounds slightly more urgent, saying trading will begin "within a few weeks".

It's also looking like other coins will have to wait it out, for now, as Roberts squashed rumors that multiple assets would be included during the launch, saying "Currently, our service offering is focused on Bitcoin”.

Fidelity recently said the results of a privately conducted study showed 47% of institutional investors are interested in holding digital assets - it appears they're now moving fast to meet the demand.

My current thoughts on the whole thing - while I've heard some say this will certainly trigger a bull run, I wouldn't take it quite that far...yet.

Could it? Absolutely!

But hold off on making predictions until this major question is answered - how aggressively will they push cryptocurrency to their clients? We have no idea - they haven't touched on the marketing plans yet.

Remember - we're paying very close attention to every step they take towards their official entry into the cryptocurrency realm.  But their average client isn't, they'll need to be offered the option of adding cryptocurrency to their portfolio.

If it's something a client will have to inquire about themselves, I wouldn't expect a dramatic bull run. Let's keep expectations reasonable, and speculation low, until we learn more.

Author: Ross Davis

San Francisco News Desk

Fidelity Investments, the #1 holder of 401k plans in the USA with 23 million customers, announces their big entry into cryptocurrency!

For those of you who may not have invested outside of the cryptocurrency markets, first you must understand just how big Fidelity Investments is.  They administer more than $7 trillion in customer assets, employ over 40,000 people, and have 190 financial planning offices across America, plus 10 regional management buildings.

Recently they've set their sights on the tech world in a big way, from artificial intelligence to virtual reality, and of course - blockchain and cryptocurrency.

What's been surprising is how they've managed to make their entry into tech so quietly, spending $2.5 billion per year for the last few years through their lesser known 'Fidelity Labs' and 'Fidelity Center for Applied Technology' and have been battling it out with Google, Facebook and Microsoft to recruit top Silicon Valley talent to work for them - I even know a couple people here in Silicon Valley their recruiters have reached out to.

Today, they unveiled their plans for what they'll be doing in the cryptocurrency markets as they launch a new company dedicated to it called 'Fidelity Digital Asset Services'.

“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors,” said Abigail P. Johnson, Chairman and CEO of Fidelity Investments.

“We started exploring blockchain and digital assets several years ago, and those efforts have been successful in helping us understand and advance our thinking around cryptocurrencies. The creation of Fidelity Digital Assets is the first step in a long-term vision to create a full-service enterprise-grade platform for digital assets.” added Tom Jessop, head of Fidelity Digital Assets.

Now the big question is this - will their financial advisers actively be suggesting cryptocurrency to their existing customers, as another way to diversify their portfolios?

If the answer to that is yes - it's a big deal.  Fidelity recommending investing in cryptocurrency to their massive list of clients could literally bring in millions of new people into the crypto markets. 

Think i'm exaggerating?  Over 23,000 businesses use Fidelity for their employee's retirement plans and 401k's, making them #1 in the country.  Between this and their other investment services, they have over 27 million customers - how many will end up adding cryptocurrencies to their portfolios?

Their cryptocurrency based services launch in a few months in 2019.  They will offer Bitcoin and Ethereum to start with.
Author: Ross Davis
E-Mail: Twitter:@RossFM
San Francisco News Desk