Prominent Bitcoin Figures Trust Fidelity’s Crypto Approval, Actions Will Help Shape The Market
Ever wonder what is stopping institutional investors from entering the crypto sphere? Are the tactics established by involved parties not convincing enough? Investors aren’t the only ones who are stuck contemplating on what is stopping the crypto market from maturing. CEO of Binance, Changpeng Zhao (CZ) has recently stimulated many through his tweet, which claims to argue that institutional investors are actually making a move.
CZ tweeted the following question which addressed Fidelity’s crypto portfolio:
What happens when a fund like Fidelity allocates a mere 5% of their portfolio to crypto? Have you calculated how much that is? https://t.co/ljcZ4SjQnw
— CZ Binance (@cz_binance) October 21, 2018
Why was this question asked? Turns out, CZ was only showing the progress being made within the crypto sphere. While five percent might look ridiculously small, or even insignificant, Fidelity’s five percent is equivalent to “more than doubling (almost triple) the entire crypto market,” as quoted by CZ. More specifically, it has a value of nearly $350 billion, which isn’t so little after all.
With the market currently switching plateaus and dips, the urge to get institutional investors involved has only exponentially grown. As per a News BTC report, Michael Novogratz has recently partnered with BitGo and Goldman Sachs to get everyone off of those sidelines.
Fidelity Investments’ interest in cryptocurrencies, while being recent, is an interesting one, and it has been proven to be reliable ever since the firm launched a crypto business which permitted institutional investors to invest in a safe manner. Another crypto enthusiast and CEO of BKCM, Brian Kelly strongly believes that Fidelity’s support for crypto is what validated the asset in the eyes of institutional investors.
In particular, he said:
“Custody has been a very big hurdle and having somebody like Fidelity put their stamp on it and say ‘yes, this is a new asset class, and we’re going to custody this,’ I believe they even said they may have some insurance.”
Before this piece did you think that the presence of institutional investors within the crypto sphere was evident? Are you now convinced that the crypto market has the potential to mature? If not, let us know why not in the comments below.