At the beginning of this year, Fidelity Investment silently launched a special crypto department; Fidelity Digital Assets. With this, the investment firm wants to support institutional investors in investing in cryptocurrency, which, according to many, means the turnaround of crypto-winter.
You might think that this is not really a good time to step into the crypto business. Some cryptocurrencies lost more than 80% of their value since the end of 2017. For example, look at the price of bitcoin (BTC) – at the end of 2017 you paid $ 20,000 for 1 BTC, now that’s only $ 3,931.
However, the head of the new department, Tom Jessop, said that the crypto prices “had no impact. If you have set up a fund during the peak of the market, then you probably suffer from the huge price drops. “Now that Fidelity has launched crypto-specific products, many expect that this may well mean the turnaround of crypto-winter.
After all, institutional investors were still waiting with entering the market due to uncertainties and the lack of investment products at institutional level. Fidelity now offers support for investing in crypto and also offers custody, which means that Fidelty will keep the cryptocurrency safe for its customers.
According to Jessop, institutional investors are just as interested as during the crypto boom in late 2017, but some still waited on the absolute bottom:
Institutional investors are now just as enthusiastic as when prices were higher. At some point there will be an attractive entry point. However, they do not want to board too early and therefore still wait in many cases.
Previously, Fidelity conducted another survey among institutional investors. After interviewing 450 investors, it turned out that 22% of the participants in the survey had cryptocurrency and wanted to double their portfolio.
In short, good news for the crypto market as a whole. Institutional investors are expected to cause a large influx of new money, resulting in rising prices and the end of the crypto winter. Nobody knows exactly when this will happen, but the opportunity for these investors to step in is now there, thanks to Fidelity.
