Fidelity Digital Assets (FDA), a subsidiary of Fidelity Investments, a leading asset management firm with a global footprint, is reportedly facilitating Bitcoin trades for its institutional customers.
Although Fidelity said it is experimenting with a “select set” of its institutional clients, it acknowledged that it would support Bitcoin trading for other customers in the future. However, the support will be based on need, among other factors.
The information has been leaked by people close to the development. The revelation comes a few days after Fidelity Digital Assets conducted a survey to establish the likelihood of institutions turning to Bitcoin as an investment class.
As per FDA’s report, 32 percent of those surveyed viewed Bitcoin “as part of an alternative asset class” while 15 percent considered Bitcoin to be an “independent asset class.” Additionally, 47 percent hold Bitcoin as an innovative technology.
The move to support Bitcoin trading, even though for a select group of its customers, opens the door for entities such as pension funds and family offices to also get a feel of Bitcoin trading while sharing in its ups and downs.
Towards the end of last year, Fidelity announced that it is considering offering OTC Bitcoin trades starting from this year. However, Fidelity is concentrating on institutional customers.
By supporting virtual currency trading, the firm is curving a competitive edge against its competitors. TD Ameritrade, a leading stock brokerage firm, recently announced that it would be creating products centered around cryptocurrency.
Additionally, Robinhood, another brokerage firm, has indicated it is considering issuing an IPO (initial public offering). Notably, Robinhood and TD Ameritrade are targeting retail cryptocurrency traders.
While Fidelity observed that they are currently only supporting Bitcoin, support for ETH may be on the way considering that the Commodity Futures Trading Commission, is reportedly comfortable allowing ETH futures.
In 2019, there has been an increased interest in Bitcoin and other cryptocurrencies due to the anticipated bull market which is slowly taking shape.