According to Christine Sandler, Head of Sales and Marketing at Fidelity Digital Assets, despite the global economic problems caused by the coronavirus pandemic, Bitcoin and other cryptov currencies have received a strong push for mass acceptance by institutional investors. Fresh developments are proof of this. Recently, several large companies have invested in the cryptovoltaic market, causing a shortage of BTC supply in trading.
The Fidelity investment firm itself is not new to the cryptosphere. In fact, according to Sandler, the company began to study decentralised technologies back in 2013-2014. At the time, the firm wanted to use its expertise in traditional financial sectors to unite the world of traditional assets and the world of cryptology.
However, Fidelity is not the only major company that actively invests in Bitcoin and other coins. As we recently found out, there are at least seven other organisations that support the idea of investing in the crypt. The list includes Grayscale, MicroStrategy, Square and other well-known companies.
A great year for Bitcoin
Until 2020, the dynamics of the crypto market was dictated mainly by individual investors, i.e. ordinary people who had heard about coins. However, a few months ago the situation changed dramatically: institutions – large companies wishing to make money from the high volatility of the crypt – joined the game. The coronavirus pandemic has contributed to this in many ways, I am sure Sandler. Or rather, the inability of the traditional financial system to cope with the new economic crisis.
Here is a quote from Decrypt, an expert.
What we saw in 2020 was a wider spread of the concept of digital gold, and it began to resonate with other groups of institutional investors, namely hedge funds, individuals with ultra-high incomes and, subsequently, family offices.
In other words, the interest of major players began to emerge after other well-known companies paid attention to the crypt currency. As a result, we got a kind of domino principle, which had a good impact on overall capitalisation.
In August, Fidelity Investments President Peter Jubber announced the company’s plans to launch an index fund for Bitcoin Union. According to Sandler, with a minimum investment of 100 thousand dollars, this structure will also be focused on institutions and accredited investors, who for some reason can not directly receive Bitcoins.
The expert continues.
We found that we have a number of clients who would like to have access to a new asset class, but could not afford the luxury of owning a BTC. [The Bitcoin Index Fund] is primarily designed to serve those who have really had problems buying a lot of coins.
Accordingly, the company’s initiative allowed investors to achieve their goals and, in turn, increased demand in the market. This should also be seen as a positive factor, the consequences of which are visible at the current exchange rate of the first coin.
It should be noted that this is an excellent solution for large companies. Usually their investments are in the tens of millions of dollars. Such a large order to buy a BTC at the market price can really shake the balance of buyers and sellers in the auction, leading to a sharp rise in the price of the coin.
However, the institutional love of Bitcoin has not yet affected other large cryptographic currencies like the Etherium. Despite the imminent launch of Ethereum 2.0, Sandler said that Fidelity’s clients continue to focus mainly on BTC.
We believe that the analyst’s comments are indeed correct. The initiatives of many companies have not only created a positive atmosphere around cryptology, but also allowed people to invest in them without any problems. This means that the popularity of coins and the degree to which they are accepted by investors is really at its peak. Accordingly, the niche has opened up a new space for further growth, which, among other things, is proved by current courses.
And what do you think about this? Share your opinion in our crypto. Also look into Yandex Zen for more materials.