We reported that on October 15, Wall Street made an essential step towards the cryptosphere.
The world’s fourth, largest asset manager Fidelity with $7.2 trillion assets under management just launched its crypto branch, supporting the legitimacy of cryptocurrencies.
Back then, Fidelity CEO Abigail Johnson said that the long-term strategy of the investment company is to make Bitcoin and cryptos more accessible to investors:
“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors. We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”
Fidelity validates more the legitimacy of cryptos
With its move to open a crypto branch, the company practically flaunted its stamp of approval on cryptos as a new asset class.
This has allowed the market to appeal to institutional investors that include pensions, hedge funds, and endowments.
One of the world’s largest asset managers and investment companies has recognized crypto as an asset class, and BKCM CEO Brian Kelly highlighted that this whole move triggers the arrival of a herd on institutional investors in the crypto space.
“It is not so much as the institutional mandate anymore. Custody has been a huge 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 might have some insurance. So that is a step closer,” said Kelly on CNBC’s Fast Trader.
Changpeng Zhao predicted that institutional money would enter the crypto space
Binance CEO Changpeng Zhao also said that institutional money would enter the crypto space and it’s all just a matter of time.
He highlighted that when a fund like Fidelity allocates only 5% of their portfolio to crypto, it’s massive.
5% of $7.2 trillion assets under management by Fidelity is equivalent to around $360 billion, which is larger than the total valuation of the crypto market.
