Top U.S based investment company Fidelity Investments is reaching out to European Institutional investors with an opportunity to invest in digital assets. The company is launching an arm known as Fidelity Digital Assets Ltd., which will focus on providing investment in digital assets including Bitcoin and other cryptocurrencies.
This is one of the major steps Fidelity is taking in encouraging institutional participation in the cryptocurrency market. It has established Fidelity Digital Assets in the United States which is a major player in the cryptocurrency space in the country.
According to the head of corporate business development at Fidelity Investments and president of Fidelity Digital Assets, Tom Jessop, the company has witnessed growing participation from institutional investors in digital asset investment.
“Since launching Fidelity Digital Assets in the U.S. over a year ago, we’ve seen significant interest and engagement by the institutional community, which shows no sign of slowing. We’re also encouraged by continued corporate and venture investment in market infrastructure companies as well as the entry of traditional exchanges into the digital assets ecosystem,” he said.
Fidelity Digital Assets in October announced its Bitcoin custody solution which has been in operation since then. This was also an effort to provide institutional custody services to encourage institutional investment in cryptocurrencies as the security of investments has been a major factor hindering institutional participation.
For 2020, the company has also announced that it will be supporting Ethereum. Jessop said Bitcoin already has enough track record and has sufficient trust from institutional investors but Ethereum and other cryptocurrencies still need support and Fidelity Digital will support the second largest cryptocurrency as long as institutions show interest in it.
Although Fidelity has done significant work in bringing institutions into the digital asset space, the new focus on Europe may be a significant addition to this effort and digital assets especially Bitcoin may be seeing a new inflow of institutional investors in Europe soon.