Anthony Pompliano: Fidelity To Invest In Top Cryptos Assets Like Bitcoin (BTC) And Ripple’s XRP
One of the co-founders of Morgan Creek Digital, Anthony Pompliano, recently talked about how Fidelity Investments is entering the crypto market. According to him, the company will offer for its clients the most popular investment options like Bitcoin and Ripple’s XRP token.
He was recently interviewed by Ran NeuNer on the latest episode of CNBC’s Crypto Trader. During the interview, Pompliano affirmed that Fidelity would only offer a handful of options when their service was finally launched soon. Why? Because their clients would only want the tokens with the highest market cap.
According to him, most organizations are pension funds, foundations, sovereign wealth funds, etc. Because of this, they do not even think about the bottom 99% of the crypto market, they just want the top. They want large investments which are less risky, so they will not invest tokens outside of the top 5.
Bitcoin will be the most natural investment for them and they might want to divide their efforts with Ethereum or Ripple, but this is as far as they will go unless some of the other tokens will start to go up and take their place.
This may seem strange for crypto traders, which would obviously invest in most of the top 10 or top 20 crypto assets, but the truth is that the kind of client of the company will be very different from the current ones.
Frank Chaparro, which was also present during the interview, highlighted that Fidelity seemed like big news but that the company was actually with a very small operation at this time, as it only had like five clients.
An spokesperson from Fidelity, Arlene Roberts, has also affirmed that the company was focused mostly on Bitcoin right now, but that this could change in due time.
The Binance Hack
Pomp also talked about the recent Binance hack. He highlighted the fact that the Bitcoin network was not hacked, Binancewas. A private company was hacked, not the ledger. Cold storage was not even touched, only the hot wallets. It was even less than 2% of the funds that were stolen, so it was not such a huge deal as some people thought.
He affirmed that this was a great reminder for people that the coins are not really yours unless you hold the keys.
You can actually lose your assets if you use centralized exchanges to store them Just like banks are robbed in the fiat world, people will attack these companies as well, but they will not be able to hack the actual Bitcoin network.