Tag: Fidelity Investments

Fidelity Launches a New Commission-Free Crypto Trading Product

by Blockchain News

Fidelity Investments, one of the largest asset management firms in the world has launched a crypto trading service, giving its customers the ability to embrace Bitcoin (BTC) and Ethereum (ETH) directly.

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As reported by CNBC, the new service is dubbed Fidelity Crypto and will be powered by Fidelity Digital Assets, a more developed offshoot the company launched to handle its investments in the nascent crypto ecosystem.

 

Embracing Bitcoin and Ethereum through Fidelity has been made relatively hassle-free as no commission is charged. While most institutional investment firms typically require only their most wealthy clients to invest in cryptocurrencies, Fidelity has set a threshold of a minimum of $1 in order to be able to maintain the account.

 

The company said it will be adopting the revenue generation model of Robinhood and Binance.US and it will be adding a 1% spread into every trade execution price.

 

“Where our customers invest matters more than ever,” Fidelity said in a statement shared with CNBC. “A meaningful portion of Fidelity customers are already interested in and own crypto. We are providing them with tools to support their choice, so they can benefit from Fidelity’s education, research, and technology.”

 

Fidelity has over $9.9 trillion in assets under management, and it has been exploring renewed strategies and models to dominate the crypto ecosystem. Just like BlackRock, Fidelity has launched a good number of crypto products over the years and as well, partnered with so many other crypto firms.

 

That big money firms are getting into the crypto bandwagon spells a lot of good omen for how far the industry has come over the past decade. With outfits like Fidelity and BlackRock now leaning to offer services that are predominantly reserved for crypto exchanges, the competition is growing and geared to benefit consumers in the Web3.0 ecosystem much more.

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Fidelity Institution’s President Advocates Room for Consumers to Acquire More Crypto

by Blockchain News

Michael Durbin, the Fidelity Institutional President is advocating for more digital currency allocations for consumers in a bid to match the current demand.

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Speaking at a Securities Industry and Financial Markets Association’s annual meeting in New York City, Durbin said institutional investors will need to be conservative in allocating funds for consumers after conducting a proper risk assessment.

 

“As digital assets extend beyond cryptocurrencies and other sorts of wrapped tokens, or whatever the regulatory environment facilitates for us, we think there will be an increased funding for that portfolio construction,” Durbin said. “A basis to get more digital assets into the end consumer portfolios.”

The digital currency ecosystem is highly volatile and this will still make investments to be at risk. The cryptocurrency industry has trillions of Dollars since it attained its peak in November 2021 as lower prices and collapsing firms have generally made sentiments to be bearish in the space as a whole.

Durbin advocated that caution should be the watchword for crypto investors when choosing assets to allocate investors funds into.

“What we’ll be putting out to advisors is just be careful in your risk budget if you’re going to allocate any money to bitcoin for alpha creation,” Durbin said. “You better set aside a pretty meaningful amount of your risk budget, which can be defendable, but that’s sort of the evolution we need to get into.” 

 

Fidelity has played a frontline role in helping to break the barriers for institutional investors to get involved in the crypto ecosystem. Besides launching an avenue for 401(k) subscribers to invest in digital currencies, the firm has been operating its crypto custody business since 2019, paving the way for institutions to safeguard the coins they invest in.

Fidelity has tried launching a Bitcoin-based exchange-traded fund (ETF) product, but in the SEC’s characteristic manner, its application has been rejected alongside others.

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Fidelity Set to Hire 100 Employees to Strengthen its Crypto Firm

by Blockchain News

Fidelity Digital Assets, the asset management Behemoth Fidelity’s cryptocurrency division, has disclosed its plans to hire 100 new employees in the next six months to strengthen its workforce. 

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Chris Tyrer, the CEO of Fidelity Digital Assets Europe and Fidelity Digital Asset Management made this statement during a panel discussion at the Blockworks Digital Asset Summit earlier this week in London.

Tyrer said, “We’ve gone through a fairly aggressive hiring spree over the last 12 months and we probably, in excess, doubled the size of our organization, so we’re probably looking at adding another 100 over the next three to six months.” 

Recall that since its establishment, Fidelity Digital Assets offshoot has been actively involved in the crypto sphere. Again, the firm, which is in charge of $9.9 trillion, recently introduced an Ethereum index fund and developed a platform for digital trading assets alongside Charles Schwab and Citadel Securities.

Additionally, Fidelity Digital Assets, equally stated that to complement its current bitcoin trading and custody services, it will soon begin providing Ethereum to institutional clients. Before the announcement, the enterprise exclusively offered BTC trading services.

Hiring in Crypto Winter

Fidelity’s employment strategy is implemented at a time when numerous significant crypto companies are laying off employees. Recall that one of the oldest market makers in the sector, GSR, cut almost 10% of its personnel last week.

Similarly, the exchange hiring comes after many renowned cryptocurrency startups experienced executive departures. FTX, Kraken, Genesis, and NYDIG are leading crypto companies where top administrators have retired.

The Wall Street Journal reported back in May that Fidelity Digital Assets intended to hire 110 technical personnel and 100 customer service personnel this year.

Presently approximately 400 employees work with Fidelity Digital Assets according to Tyrer. He added that the platform services business, which includes everything from holding to trade execution, and the asset management firm are two independent entities.

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Fidelity, Schwab, Citadel Securities Launch New Crypto Exchange EDXM

by Blockchain News

Financial heavyweights, including Charles Schwab (SCHW), Citadel Securities, and Fidelity Investments, announced a launch of a new cryptocurrency exchange on Tuesday.

As per the report, the trio has collaborated on launching the cryptocurrency exchange called EDX Markets (EDXM).

The exchange is described to be a first-of-its-kind designed with a promise to offer safer, faster, and more efficient cryptocurrency trading. The exchange aims to eliminate expensive bilateral settlements by netting and settling trades through its blockchain network.

The EDXM’s trading platform will rely on the technology built by The Member Exchange (MEMX), a U.S. stock market owned by a group of financial firms, including some of EDX’s creators. This will enable the EDXM to scale its operation to serve retail and institutional investors in several markets.

The exchange will also be backed by ventures, including Citadel Securities, Paradigm, Sequoia Capital, and Virtu Financial.

Jamil Nazarali, the former global head of business development at Citadel Securities, is assigned to lead the EDXM exchange, serving as the CEO of the platform.

In a statement, EDX Markets’ board of directors said: “Crypto is a $1 trillion global asset class with over 300 million participants and pent-up demand from millions more. Unlocking this demand requires a platform that can meet the needs of both retail traders and institutional investors with high compliance and security standards.”

New-Found Interest in Crypto

Despite the fall of crypto prices this year, institutional interest in the market has remained high as institutions bring in fresh money and more money than retail can pour in. Established asset managers like Abrdn, Charles Schwab, and BlackRock recently took a hard look, seeking to secure a foothold in the market.

Last month, Abrdn, the U.K. investment group, bought a stake in digital assets exchange Archax. BlackRock opened a private trust offering institutional clients in the U.S. direct exposure to Bitcoin. Schwab also launched a crypto-linked exchange-traded fund (ETF).

Last month, South Korean securities companies (including Mirae Asset Securities and Samsung Securities) reportedly focused on the crypto industry, with plans to set up digital asset exchanges in the first half of 2023.

Early this month, SEBA Bank launched Ethereum staking services, an institutional-grade offering enabling clients to earn staking rewards on Ethereum.

Asset managers have become open to multiple futures of finance. They are increasingly embracing cryptocurrency as a legitimate way of hedging sophisticated investors’ portfolios, like other alternative assets such as Gold.

Some brands have circumvented the usual Bitcoin-first route and ventured into non-fungible tokens (NFTs), ETFs, and the metaverse.

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Fidelity to Offer Crypto Trading to Retail Customers

by Blockchain News

Fidelity Investments plans to launch Bitcoin trading for retail customers on its brokerage platform, The Wall Street Journal reported the matter on Monday, citing people with familiar sources.

The Boston-based investment management company has more than 34.4 million individual brokerage clients on its brokerage platform. Due to this huge customer base, the firm is exploring allowing these retail clients to trade Bitcoin on its brokerage platform.

During a panel discussion at the SALT New York conference on Monday, Mike Novogratz, CEO of crypto investment firm Galaxy, said he had heard Fidelity was moving to offer cryptocurrency to retail customers.

“A bird has told me, a little bird in my ear, that Fidelity is going to shift their retail customers into crypto soon enough. I hope that bird is right,” Novogratz said.

Fidelity responded to a request for comment, saying: “While we have nothing new to announce, expanding our offerings to enable broader access to digital assets remains an area of focus.”

The trillion-dollar asset manager launched its Bitcoin-trading business for institutional investors and hedge funds in 2019. One year later, the firm launched its Bitcoin index fund, which amassed over $125 million in investments in May this year.

Betting on Crypto Investing

In April, Fidelity Investments made headlines when it started allowing investors to add Bitcoin to their retirement accounts.

Fidelity’s decision to let its clients incorporate Bitcoin into their retirement accounts was a landmark first for major retirement plan providers. Fidelity Investments is the country’s largest 401(k) provider.

In May, the crypto winter set in, and the industry suffered nearly $1 trillion in losses over a month. Despite that, Fidelity Digital Asset Services, a subsidiary of Fidelity Investments, launched plans to double its headcount on the bet that institutional investor interest in crypto would persevere.

Fidelity’s digital assets arm intended to hire 110 tech workers and 100 customer service employees as it believed institutional crypto trading demand would increase.

During that, Fidelity said falling crypto prices did not affect the company financially, although the flow of new customers slowed down. Regardless, the company maintained its commitment to investing in crypto trading technology.

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Fidelity Investments Unveils Plans to Expand Business by Hiring Crypto Savvy Staff

by Blockchain News

Fidelity Digital Assets, the cryptocurrency arm of Fidelity Investments, is set to additional onboard hands as it prepares for the growing demand in the digital assets ecosystem.

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Primarily designed to cater to institutional investors, the crypto arm of the investment giant was established back in 2018, with Bitcoin (BTC) custody and trading services launched afterwards.

The digital currency ecosystem has grown remarkably from that time until now. To reposition itself to capture a good share of the market, Fidelity is set to hire 110 engineers and developers with blockchain expertise. These professionals will help the company build a robust crypto infrastructure that can also support Ethereum (ETH), the world’s second-largest digital currency.

Despite the fact that the cryptocurrency industry has taken a beating recently, fueled by the Terra blockchain crash, Fidelity Digital Assets head, Tom Jessop said the offshoot is focused on long-term structures that fuel growth.

“We’re trying not to focus on the downturns and focus on some of the long-term indicators,” such as demand from clients, Mr. Jessop said. “We are trying to build infrastructure for the future because we measure success over years and decades, not weeks and months.”

While Fidelity Investments currently boasts over 400 clients, including hedge funds and registered advisors, the firm plans to hire as many as 100 customer service agents to help provide the proper support.

Ideally, there has been growing competition in the digital currency ecosystem, and this has heightened the demand for skilled workers as many growing startups are being given massive funding and in turn, they offer experienced blockchain staff an ambitious growth path. 

Fidelity still has the name and the right industry history of attracting the best talents. However, the firm’s overall goal will be to be well-positioned to handle the demand as the digital currency ecosystem goes mainstream.

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Fidelity Investments Adds More Than 12,000 New Jobs to Meet Customer Interest in Growing Areas Like Crypto

by Blockchain News

To address customer demands in growing areas like cryptocurrency and direct indexing, Fidelity Investments has created more than 12,000 job offerings to shape the future of financial services. 

As a leading American multinational financial services corporation, Fidelity sees the new jobs as a stepping stone towards sustainable growth in different areas, such as advisory assets, daily trades, and assets under administration. 

Per the announcement:

“The new jobs are across all job functions, particularly customer-facing positions (69 percent) and technology positions (14 percent) and represent one of many ways Fidelity makes significant investments back into the customer experience.”

To meet the preferences of the next generation of investors, Fidelity is also rolling out development and innovative training programs.

For instance, a program dubbed ADAPT is meant to highlight careers at Fidelity in the cryptocurrency and blockchain field. 

With assets under administration hitting $11.3 trillion, Fidelity seeks to adhere to the unique needs of different customers. 

Kristen Kuykendoll, the head of talent acquisition at Fidelity Investments, pointed out:

“Our new career development programs help associates explore what’s next in their careers, learn skills for the future, and improve on processes across our businesses that will make an impact on peoples’ lives.”

The new jobs are expected to be filled by the close of the third quarter. 

This announcement comes days after Fidelity revealed that it would permit the allocation of some of its client’s retirement savings into Bitcoin because this move was necessitated by popular demand, Blockchain.News reported. 

It was pointed out that the permission for subscribers to invest in Bitcoin-backed 401(k) plans was dependent on whether the sponsors of the scheme favored such a move or not.

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Investment Giant Fidelity Names Two Bullish Catalysts That Can Push Bitcoin (BTC) to Greater Heights

by Dailyhodl

Financial services giant Fidelity is making the case for Bitcoin (BTC) as a strong investment despite BTC’s recent tumble from a November all-time high above $69,000 by more than 50%.

In a new report, the firm cites two key reasons why investors should assess Bitcoin separately from all other cryptocurrencies.

“Bitcoin’s return profile is driven by two strong tailwinds: the growth of the digital asset ecosystem and the potential instability of traditional macroeconomic conditions.

These return tailwinds are likely to be captured in an easier way with less risk than via the majority of other digital assets.”

While Fidelity stresses the reason behind making a distinction between Bitcoin and the rest of the nascent asset class, it does think BTC’s competitors have important roles to fill.

“Bitcoin is fundamentally different from any other digital asset. No other digital asset is likely to improve upon Bitcoin as a monetary good… [but] the rest of the digital asset ecosystem can fulfill different needs or solve other problems that Bitcoin simply does not.”

The report also notes that when it comes to stability and security, the decade-plus-old Bitcoin has already passed the test.

“It is arguably the least likely protocol to encounter a major bug at this stage in its life given it has existed longer than any other project, holds an intentionally simplistic code and has a now $1 trillion bounty for anyone capable of exploiting it.”

The second key reason behind Fidelity’s praise for Bitcoin lies in its ability to act as a hedge against inflation.

“The increasing use of monetary and fiscal policy as a way to provide support for ongoing economic growth may give rise to concerns about the overall stability of the financial system and the ability for the economy to stand on its own.

These types of macro environments have historically tended to benefit scarce assets whose supply cannot be altered.

Bitcoin’s rule set, historical precedents, and decentralization have created the greatest level of scarcity of any digital asset protocol. This makes a compelling case as the greatest available hedge for some of the potential headwinds facing the legacy financial system.”

At time of writing, Bitcoin is up 1.29% and trading for $38,846. It’s risen 16% from a monthly low of $33,520 on January 24th.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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All-time highs next? Bitcoin holds $62K as the Dollar index tumbles to 3-week lows

by Cointelegraph

The U.S. dollar index (DXY) could continue its slide in Q4, according to a classic technical setup known as a “rising wedge.” The greenback’s bearish prospects may boost Bitcoin’s (BTC) price to new all-time highs as it holds above $62,000.

DXY poised for another 1.75% drop

Rising wedges are bearish reversal patterns that begin wide at the bottom but contract as the price increases. As a result, the trading range narrows, which makes the rally unconvincing. That typically prompts the price to break below the wedge’s support line and later fall by as much as the maximum distance between the pattern’s trendlines.

The DXY has been forming a similar price structure since August. Moreover, the index’s decline this week had it break below the wedge’s support line, therefore triggering a bearish setup toward 92.416, down about 1.75% below the level of breakout (around 93.98).

DXY daily price chart featuring rising wedge setup. Source: TradingView

A week ago, DXY reached a one-year high of 94.563, reaping the benefits of stagflation fears and the Federal Reserve’s decision to unwind its $120-billion-a-month asset purchase program in November, followed by interest rate increases next year.

But the index dropped to a three-week low on Oct. 19, underscoring that money markets have priced in the Fed’s tapering decision. Instead, their focus has shifted toward policy normalization elsewhere, including the United Kingdom, where analysts have forecasted rate hikes worth 35 basis points by the end of this year.

Bitcoin rallies on ETF FOMO

Bitcoin price found support from the weaker dollar this week, in addition to optimism about the debut of the first exchange-traded fund (ETF) tied to BTC futures on the New York Stock Exchange.

BTC/USD has rallied by over 40% month-to-date to hit a five-month high of $62,987 on Oct. 19. A minor correction ensued, but Bitcoin held $62,000 as its interim support against a weakening dollar sentiment. 

BTC/USD daily price chart featuring ascending channel pattern. Source: TradingView

Technically, Bitcoin reached the bullish exhaustion level of its prevailing ascending channel range. With its relative strength index (RSI) also overbought with a reading above 70 on the daily timeframe, the cryptocurrency could undergo an interim price correction with a short-term support target near $60,000.

But long term, multiple analysts anticipate Bitcoin’s price to hit $100,000.

Tom Lee, co-founder of Fundstrat Global Advisors, said in a note on Oct. 18 that ETFs based on Bitcoin futures would together attract more than $50 billion in inflows in the first year, adding that BTC could conceivably rise to $168,000 in response.

Related: BTC price is up 50% since China ‘selflessly’ banned Bitcoin mining

Jurrien Timmer, director of global macro at Fidelity Investments, noted that Bitcoin would become a six-figure asset by 2023, citing Metcalfe’s law, which measures a network’s value based on its growth rate.

“Other technology innovations, and even, like, a stock like Apple — not that I’m a security analyst — has gone through that same process, where its sales go up 38-fold over 10, 20 years, and its market value goes up by 900-fold,” Timmer

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The Rise of Bitcoin Does Not Threaten USD, According to Fidelity Investments Director

by Dailyhodl

An executive at Fidelity Investments says that Bitcoin (BTC) may reach $100,000 by 2023, but that won’t threaten the value of the US dollar (USD).

In a new interview with CNBC’s “Squawk on the Street,” Fidelity Investments director of global macro Jurrien Timmer predicts that the largest crypto asset by market cap could be valued at $100,000 within the next two years.

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“It’s not a bubble that’s about to burst. 100k, and I know better than to make bold price predictions on the air, and certainly Twitter will do that for me anyway, so I don’t need to.

But I have a supply model and a demand model, and the next and last time that those two models intersect is at around 100k in a couple of years.”

Timmer’s latest BTC price prediction follows a June about-face after he previously said the crypto would fall as low as $23,000.

When CNBC co-anchor Morgan Brennan asked if BTC’s recent global use cases, such as El Salvador’s adoption of the cryptocurrency on a national scale, threatens the value of the USD, Timmer replied,

“I really don’t think Bitcoin threatens the dollar or the dollar’s reserve status. I know that’s a common narrative among the hardcore Bitcoiners, and I do not subscribe to that at all.

And actually, I’ve heard the point made that maybe it actually further ensures that the dollar will maintain its reserve status…”

BTC is trading at $57,427 at time of writing, up 37.9% over the past fourteen days, according to CoinGecko.


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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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