90% Of Fidelity’s Biggest Clients Are Asking About Bitcoin

Fidelity Investments’ digital assets division has made Bitcoin its main focus. Christine Sandler, Fidelity’s head of marketing and sales, stated that 90% of its largest clients are asking about Bitcoin in an interview with The Boston Globe.

Fidelity’s president of digital asset business, Tom Jessop, stated to the Boston Globe, that Fidelity is making a long-term bet on the development of a new type of financial infrastructure around Bitcoin.

Jessop stated that Bitcoin is becoming a more popular asset in institutions.

Jessop answered a question about altcoin support and said, “I don’t believe we’ll ever become the most comprehensive provider in terms of asset coverage.” Fidelity currently mines Bitcoin and custodies it for institutions to ensure its safety, soundness, and security.

Christine Sandler said, “We’re dealing primarily with traditional investors, so the entry vehicle into this space is largely Bitcoin.” But she also stated that altcoins such as ethereum are not nearly as popular as bitcoin.

Jessop stated that institutions are increasingly using Bitcoin to hedge against inflation.

Jessop pointed out that the sharply rising Bitcoin price piqued interest in high-profile investors like Paul Tudor Jones and Stanley Druckenmiller as a store value. ‘That’s when the match to the bonfire was set.

Jessop expressed optimism regarding the recent push for regulation of Bitcoin, as long as it is not overregulated. He said that he was supportive of regulation. However, regulations must be proportionate to other asset classes in order for this asset class to grow and investors to trust what he and others are doing. While we don’t believe it should be excessively regulated, we do think it should be as consistent with other financial products purchased by consumers and institutions today.

Fidelity applied for approval of a Bitcoin ETF in March, as many other financial institutions did. This was due to the increasing demand for investment vehicles that have Bitcoin price exposure in the U.S.

Fidelity has been mining Bitcoins since 2015. According to the report, its operation now relies primarily on hydropower from Canada and other renewables. The scale of Fidelity’s bitcoin mining operation is unknown, but it is reportedly small yet profitable.

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