Fidelity, a $4.5 trillion asset manager, began with Bitcoin and is now focusing on Ethereum. In an email to its clients, Fidelity Digital Assets announced that “Institutional Ethereum capabilities are coming to the Fidelity Digital Assets platform on October 28, 2022.” The product will only be accessible to Fidelity’s current institutional clients who currently trade or own Bitcoin, for which the company started providing services in 2018.
Fidelity Digital Assets just sent an email to customers announcing that Ethereum will be available for purchase this month. pic.twitter.com/3V0GCrOt5z
— Bruce Fenton ?? (@brucefenton) October 19, 2022
Fidelity has long expressed an interest in cryptocurrency-related assets. The asset manager claimed that many investors are starting to view Ethereum “through a new lens” as a result of the Ethereum merge, which completed the network’s move to proof of stake. The long-awaited upgrade also considerably reduced the rate at which ETH was being issued.
The Fidelity Digital Assets Account, which currently enables institutional clients to add Bitcoin to their 401(k) retirement savings plans, is unrelated to the custody service. Some members of Congress have already criticized the company for providing the latter service, particularly Democratic Senator Elizabeth Warren.
To build out further blockchain services like Ethereum trading and custody, Fidelity Digital Assets President Tom Jessop told the Wall Street Journal in May that the company was hiring over 100 tech personnel.
The WSJ reported last month that Fidelity would soon provide Bitcoin trading to retail consumers; Galaxy Digital CEO Mike Novogratz also made this speculation public. Currently, Fidelity offers two exchange-traded funds (ETFs) for businesses involved in crypto and metaverse payments.
It also introduced a Bitcoin spot ETF in Canada, but the Securities and Exchange Commission’s barriers prevent it from doing the same in the United States.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
