Fidelity Investments Inc., a Boston-based financial services corporation, announced on Tuesday that Bitcoin has become a primary focus of the company’s digital asset division. In a recent interview with the Boston Globe, Fidelity’s head of sales and marketing Christine Sandler stated that 90 percent of Fidelity’s largest customers have inquired about bitcoin and that the company is now looking to open up the space for retail.
Founded in the 1940s, the firm managed $10.4 trillion in assets as of March 2021. Aside from that, Fidelity Investments has been laying the groundwork for nearly six years to become a crypto space behemoth. Devonshire Investors, the firm’s venture capital division, has funded a number of promising startups, including Boston-based Coin Metrics, ErisX, and Talos, among others.
Fidelity establishes the foundation for a long-term relationship with cryptocurrencies.
While there are regular cycles of hype around newly created crypto tokens in the crypto space, the market giant remains focused on Bitcoin (BTC). Sandler responded by stating that Fidelity primarily works with traditional investors and that bitcoin is regarded as a prime entry point into the crypto space. She continues,
“The global interest in ethereum has increased in recent months, but it is nowhere near what we see in bitcoin.”
According to the Boston Globe, Fidelity’s digital asset business unit president Tom Jessop sees Bitcoin as a true asset class, and the company intends to build a new and long-term financial infrastructure around the token. Furthermore, when asked about integrating altcoins into the platform, Jessup stated, “I don’t think we will ever be the most comprehensive service provider in terms of asset coverage.”
Fidelity intends to expand its presence in the crypto space.
For a longer time, the company has been looking to expand its presence in the cryptocurrency space. One of the many moves that the company has made recently is to apply for Bitcoin ETF approval. Fidelity, like many other financial institutions, applied for a Bitcoin ETF in March 2021. The approval, however, is still pending.
Another recent transaction was the acquisition of a 7.4 percent stake in publicly traded Bitcoin mining firm Marathon Digital Holdings. Forbes estimates that the stake is worth around $20 million. Aside from that, the company has been mining Bitcoin since 2015. The size of Fidelity’s bitcoin mining operation is unknown, but it is said to be small but profitable.