- The corporation is hiring 100 tech personnel to develop new blockchain services.
- It has also released a Bitcoin spot ETF in Canada.
For quite some time now, Fidelity has been showing enthusiasm for cryptocurrency. The asset manager said that many investors are starting to see Ethereum “through a new lens” after the recent merge, which completed the network’s switch to proof of stake. Years in the works, the upgrade has also considerably delayed the issue of ETH.
Fidelity, which manages $4.5 trillion in assets, is shifting its focus to Ethereum after Bitcoin. Institutional Ethereum capabilities will be available on the Fidelity Digital Assets platform on October 28, 2022, the company said in an email to customers. Only current institutional customers of Fidelity’s who trade or custody Bitcoin, for whom it has offered services since 2018, will be eligible to participate in the offering.
SEC Hurdles and Regulations
Although Fidelity’s Digital Assets Account currently allows institutional customers to include Bitcoin in their 401(k) plans, the custody option is unrelated to that service. Many in Congress, including Democratic Senator Elizabeth Warren, have spoken out against the company for providing the latter option.
Fidelity Digital Assets President Tom Jessop told the WSJ in May that the corporation was employing more than 100 tech personnel to develop new blockchain services, such as Ethereum trading and custody.
The WSJ reported last month that Fidelity is considering allowing retail clients to trade Bitcoin, a claim that Galaxy Digital CEO Mike Novogratz has also publicly discussed. It has also released a Bitcoin spot ETF in Canada but is still unable to do so in the United States owing to SEC hurdles and regulations needed to serve U.S customers.
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