Fidelity Plans to List Crypto Assets Other Than Bitcoin (BTC) and Ethereum (ETH)
One of the major institutional investment companies in the world, Fidelity Investments, is looking to enter in the crypto game. You probably already know that, though. What you may not know is that this investment platform plans to expand its assets in the future and to include other tokens that are neither Bitcoin (BTC) nor Ethereum (ETH) on its assets.
According to a recent announcement made by the company at the Block FS conference in New York, Fidelity wants to invest in other assets from the top five to seven cryptos. This would include some other heavy hitters like Bitcoin Cash (BCH), Stellar Lumens (XLR), Ripple (XRM) and Litecoin (LTC).
The Head of Fidelity Digital Assets, Tom Jessop, has affirmed that, after the platform is launched next year, some other cryptos might be adopted by the company too.
This new service will be managed by Fidelity Digital Asset Services, a new separate company from Fidelity Investments. It will initially offer custody and trading options for both Bitcoin and Ether but the services will be expanded after some time if everything happens according to the plans of the company.
Jessop believes that there is a certain demand for the other top 5 to 7 cryptos in the market and that the company will “look into that”. He explained that they already got more than 13,000 institutional customers interested in Bitcoin and Ethereum because they are a large part of the market cap now, but that there are many underexplored assets.
Going From The Top
The strategy of the company is very clear. Beginning with Bitcoin and Ethereum is certainly a good idea as the two assets are the most popular ones. After that, they will also focus on the next ones. They will not focus on the less valuable assets for now as they are still not 100% certain that they have demand enough.
Fidelity has spent the last four to five years looking at crypto assets to understand them very well before they are able to invest in them. The time was used to develop solutions that could help the company to really invest well in this market.
While neither Bitcoin nor Ethereum had great runs this year, this does not seem to make people worried at Fidelity. They will enter the market only in 2019 and they believe that things will be better then. Will them? We have to wait to find out.