Because the investment giant’s loyalty could allow Bitcoin trading

Fidelity Investments could provide its clients with access to Bitcoin trading via its brokerage platform, according to a report from the Wall Street Journal. The company has been very busy in the cryptocurrency markets and has already announced products that will provide its wealthy clients with exposure to cryptocurrency.

The new strategy will potentially expand the company’s Bitcoin offering to its 34.4 million brokerage accounts, according to sources cited by the Wall Street Journal. The strategy was suggested by Galaxy Holding, one of Fidelity’s largest clients, CEO and crypto bull Mike Novogratz.

In a speech for the SALT conference, Novogratz said the following, the report states:

A little bird told me that Fidelity, a little bird in my ear, will soon be moving its retail clients to cryptocurrencies. I hope that bird is right. And so we are witnessing this institutional march.

The potential offer has yet to be revealed to the investment firm’s clients, but similar to other banking and financial institutions, Fidelity said demand for Bitcoin and exposure to cryptocurrencies is driving these offers.

Loyalty under control for their Bitcoin offering

In recent months, Fidelity has been under the radar of US government officials as the company aims to expand its Bitcoin offering and products. As reported by Bitcoinist, a group of US senators led by Elizabeth Warren sent a letter to Fidelity CEO Abigail Johnson.

Government officials inquired about the product and a potential violation of instructions issued by the U.S. Department of Labor to allow 401 (k) accounts to gain exposure to Bitcoin. These accounts are used by the vast majority of US citizens to save for retirement.

READ ALSO :   Crypto Airdrop vs. ICO: what's the difference?

In this sense, the senators considered Bitcoin and crypto assets unworthy of being used as a long-term investment. The letter classified the nascent asset class as “volatile, illiquid and speculative”. The document stated:

While we appreciate Fidelity’s efforts to help American workers achieve safer retirement, this decision is immensely worrying. Perhaps most worryingly, by pointing out the risks of investing in Bitcoin on its website and planning to limit the plan participants’ Bitcoin exposure to 20%, Fidelity acknowledges that it is well aware of the dangers associated with investing in Bitcoin (…).

Whether the strategy of offering Bitcoin trading to its brokerage accounts will attract the same level of attention from US government officials remains to be seen. At the time of writing, the price of BTC is trading at $ 22,400 with a 4% profit in the past 24 hours.

BTC price with minor gains on the 4-hour chart. Source: BTCUSDT Tradingview

Tinggalkan komentar