Fidelity is able to offer its retail clients the ability to trade the price of BTC, without having to buy and hold it directly starting in November.
Under the name Fidelity Digital Assets, Fidelity Investments offers corporate custody and trading execution services for institutional investors. Fidelity Investments is perhaps the largest investment fund in the world with billions of dollars invested for institutional clients.
Fidelity Digital Assets addresses the growing demand for cryptocurrencies
In other words, Fidelity International is a fund management company founded in 1969. Since its inception, it has grown to over 2.5 million clients worldwide and now has a presence in 25 countries around the world.
In 2020, Fidelity International had net inflows of $30 billion, making it one of the largest fund managers with $650 billion in total assets under management.
Fidelity International’s clients range from financial institutions to insurers and asset managers. This strong inflow for the year 2020 is explained by Fidelity International’s ability to offer clients solutions that meet their need for protection, returns and, above all, a need for meaning. Solutions that respond to needs such as Bitcoin.
Indeed, Fidelity is going to bet big on Bitcoin. Spurred by the burgeoning interest in bitcoin, Fidelity launched its Fidelity Digital Assets (FDA) subsidiary in October 2018, which addresses the growing demand for cryptocurrencies among institutional clients.
As a reminder, in 2019, the powerful U.S. investment manager invested in several blockchain startups, including EverLedger and Elementus in September. FDA was chartered under New York banking law in 2019 and launched in Europe a year after being chartered to meet the growing global demand for digital assets.
It’s now 2022, Fidelity continues its journey into the crypto industry, offering its retail clients the ability to trade bitcoin starting in November.
The company already has an entire department dedicated to cryptocurrencies, Fidelity Digital Assets (FDA), although it deals specifically with crypto-services.
Through funds like this, Fidelity is able to offer its retail clients the ability to take a position in, for example, the price of bitcoin, so in a sense trading the price of BTC, without having to buy and hold it directly.