Prominent asset manager Fidelity, with $16 trillion in assets under administration, has revealed an increasing interest among clients in issues pertaining to Bitcoin and cryptocurrency.
Fidelity Digital Assets, a subsidiary of Fidelity designated for crypto investment, disclosed this in a recent social media post, exciting enthusiasts. It noted that digital assets are now a central part of discussions between financial advisors and clients, signaling growing interest in the sector.
Bitcoin Conversations Become Common
The crypto firstborn had faced criticism in the past, with most claiming it was speculative and lacked real value. Nonetheless, that mentality is shifting, with retail and institutional investors slowly adopting the asset and the broader crypto industry.
Now, institutions and wealth managers are increasingly discussing the options of gaining exposure to digital assets with their clients, according to Fidelity. This disclosure by Fidelity is massive, as it could spark more capital influx into Bitcoin and crypto.
Notably, Fidelity alone manages $16.4 trillion, and a slice of that entering the market would fuel massive buying pressure.
Meanwhile, investors are also agreeing on the long-term viability of the crypto industry. Fidelity Digital Assets disclosed that 50% of the respondents in its recent survey believe Bitcoin is here to stay; therefore, it advised financial advisors to prepare to help their customers navigate the sector more effectively.
Three Frequently Asked Questions
One of the questions clients have repeatedly asked financial advisors is about the volatile nature of cryptocurrencies. Critics have often highlighted the volatility of Bitcoin, especially as it is a new asset class compared to traditional vehicles.
However, Fidelity explained that Bitcoin is becoming less volatile even compared to prominent securities like Meta and NVIDIA. The premier asset also has a lower volatility than other cryptocurrencies.
Another FAQ is which digital asset to invest in. Fidelity identifies Bitcoin as an “entry point” for traditional investors new to the sector, highlighting its “fundamentally different” nature.
The firm views Bitcoin as the most decentralized, secure digital asset, and no other can improve on it. Nonetheless, it advised seeking other alternatives like Ethereum, the largest digital asset after Bitcoin.
The last question is on custody choice. Fidelity emphasized that while the core feature of Bitcoin encourages self-custody, those who are not comfortable could use third-party systems to hold their tokens.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
