Fidelity Investments' new trading service is commission-free, but does apply a fee. spread of 1%.
Investment management firm Fidelity Investments continues to expand its crypto services, offering its clients the ability to Buy and sell Bitcoin and Ethereum.
Fidelity has developed this new service, called Fidelity Crypto, through its subsidiary, Fidelity Digital Assets. It is a cryptocurrency trading service focused on retail customers.
The development of this new service has been driven by the growing interest from customer base of the firm towards cryptocurrencies. According to a study conducted by Fidelity, the majority of its retail clients showed interest in invest in cryptocurrencies. Some of these clients already owned some type of digital asset.
Fidelity Crypto will allow clients to Buy and sell Bitcoin and Ether without commissions. Instead, it will apply a spread of 1%. In finance, the spread is difference between the purchase price and the quoted price at the time the sale takes place. The difference is that prices fluctuate due to volatility.
For now, the Bitcoin trading service has no official launch date. However, Fidelity has already opened a waiting list so that users can sign up.
Fidelity Investments and cryptocurrency services
Recently, Fidelity Digital expanded its cryptocurrency services to institutional clients. On this occasion, he offered services of Ether investment and custody. In April, the firm created a Bitcoin investment service for its 401(k) retirement plan clients.
Fidelity is one of the firms that are betting the most on the adoption of cryptocurrencies. In the past, they have pointed out that Bitcoin is “a higher form of money"which will eventually be adopted by the whole world.
Institutional investment grows despite winter
Last month, Fidelity published a report on institutional adoption of cryptocurrencies. In it, it noted that despite the crypto market's poor momentum, Institutional investment has grown worldwide.
Asia is in the lead, with 69% of institutional investment, followed by Europe with 67% and the United States with 42%.
In the United States, a growth in the number of large fortunes who have started investing in cryptocurrencies,
The most important finding of the report is the large gap in adoption among different types of investors. In this regard, high net worth investors, private equity funds and financial advisors show greater affinity towards cryptocurrencies than traditional hedge funds, pension plans or family offices.
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