Michael Novogratz Praises Fidelity’s Crypto Space Entrance, Buying Bitcoin More Appealing To Investors
Michael Novogratz Says Bitcoin And Cryptos Will be Appealing After Fidelity Launches Its Services
Bitcoin and cryptocurrencies could be much more appealing to investors as soon as Fidelity launches its crypto services to the market. This is what Mike Novogratz, the Chief Executive Officer and Founder of Galaxy Digital, said during a conversation with Bloomberg.
According to Mr Novogratz, Fidelity is filling in a very important place in the cryptocurrency world. This would allow the market to capture the attention of institutional investors that are currently not participating in the market. He said that the entry of Fidelity gives confidence to new investors that want to enter the market.
At the same time, Novogratz said that cryptocurrencies are bare instruments. He mentioned also JP Morgan and the confidence that it instills in the investors. With Fidelity, investors will feel more comfortable about investing in these digital assets.
He then talked about custody services and how they can help new players enter the market. Fidelity is not the only company that focuses on institutional investors and that wants to attract wealthier participants. He said that these custody services will offer more opportunities to users.
Other companies that are investing in the market are Goldman Sachs, BitGo and the Intercontinental Exchange (ICE). Perhaps, the most important platform that is going to be released is Bakkt, supported and developed by the ICE. In this way, it would be possible to bring virtual currencies closer to the masses.
Tom Jessup, Head of Fidelity Digital Assets, commented about Institutional clients:
“In our conversations with institutions, they tell us that in order to engage with digital assets in a meaningful way, they need a trusted platform to enter this space. These institutions require a sophisticated level of service and security, equal to the experience they’re used to when trading stocks or bonds.”
The virtual currency market needed a better infrastructure to welcome companies and institutions. In the traditional stock market, companies and investors do not need to hold their assets but they are held in custody. The cryptocurrency world promotes another philosophy in which the user is its ‘own bank.’ Nevertheless, companies are not comfortable with it.
This can explain why there are enterprises and companies developing different custody solutions for the cryptocurrency space and market.
In December, Bakkt is going to be launched and is expected to increase the participation of larger institutions in the virtual currency world.