Business & FinanceSpotlight

Fidelity Will be Followed by Other Financial Giants Stepping Into Crypto, Says Expert

On October 15, $7.2 trillion asset manager firm Fidelity Investments announced that it wants to help institutional investors to add Bitcoin and other cryptocurrencies to their investment portfolios. Fidelity told that they will form a separate company to provide cryptocurrency trade and investment execution services for institutions. This adds one of the biggest names in the financial services sector to become inclined towards crypto, verily serving the institutional demand for cryptocurrency products.

Crypto expert David Gokhshtein shed light on other institutions expected to follow suit. He shared his belief that it is the demand from people with money that has made Fidelity move into crypto and expects other institutions to join the space as long as they see an opportunity to make money. While talking to BlockPublisher, he said:

Why Fidelity steps in? Because people are asking about it. When people with money start asking about it and there’s a way to make money, the institutions are going to be there.

Previously, we have seen the likes of financial giants such as the Intercontinental Exchange (ICE), Goldman Sachs and Morgan Stanley become involved with the crypto space. They have seen apparent potential in this rather nascent marketplace to justify their investment. However, progress has been somewhat hampered lately due to the bear run seen over the past few months.

David, however, believes that it won’t matter in the long run and eventually other financial systems will have to jump into crypto because it is an untapped opportunity to make money. He said:

I’m sure you see others jump in. No one is going to miss the opportunity of making money. Especially institutions.

Fidelity, with this move, aims to serve as a bridge between institutional investors and the crypto industry and will be headed by former Goldman Sachs executive Tom Jessop. Not barged by the drop in prices, Fidelity establishes itself in pole position to become a potential leader in the crypto-institutional partnership and has also reportedly begun to attract major university endowments.

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Razi Khan

Researcher, Electrical Engineer and a teacher, Razi is one who takes great intrigue in the prospects of blockchain and cryptocurrencies (BTC in particular) while contributing a critical approach over the subject regularly. Email: razi@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

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