It May Not Be An Easy Task for Fidelity to Bring On Board Institutional Investors
Fidelity, a U.S.-based multinational financial services corporation, is looking to enter the cryptocurrency scene, helping institutional clients invest in bitcoin and other digital assets. Well, it appears that it may not be a walk in the park for the firm to bring on board institutional investors, and many industry experts believe that the company may not make that much impact.
It’s All About Customer’s Interest
Considering that Fidelity is a financial services corporation and institutional clients are looking for a convenient access point to invest in digital assets, its decision to enter the crypto scene is surely and advantage to them. However, attracting their already existing and new customers to come on board won’t be an easy job, especially now that most of them see the industry as a risky one. Compared to the traditional investment options, digital currencies are more volatile.
And there’s more. Cryptocurrencies, including bitcoin, have not been properly regulated in most countries, even in the U.S. This had made many investors to shy away from putting their money in digital assets. They have to trust that they won’t lose their money in the process, and invoking this trust can take a long time – possibly months to years.
One of the ways that Fidelity can convince its customers to invest in cryptocurrencies with them is by showing them that their funds remain safe in their hands, through its custody services. If it can develop advanced solutions for its customers, then it could make the job easier, attracting a good number of big investors.