- Fidelity to allow bitcoin trading on its brokerage platform.
- Mike Novogratz says the firm will shift its retail customers into crypto soon.
- Fidelity has more than 34.4 million individual brokerage accounts.
The pro-Bitcoin Financial services giant Fidelity is considering allowing its investors to trade Bitcoin through its online brokerage, according to a Wall Street Journal report.
This development comes after another financial services company Robinhood added several currencies to its exchange for trading, and another competitor, BlackRock, recently teamed up with Coinbase to offer crypto trading to its institutional customers.
In 2018, Fidelity developed a platform to trade Bitcoin for institutional investors and hedge funds. Additionally, Fidelity introduced its Bitcoin index fund in 2020, which saw investments boasting $126.5 million in May.
Earlier this year, the largest supplier of 401(k) savings accounts allowed corporate clients to add Bitcoin to the 401(k) retirement plans it manages for them.
However, the plan has caught flak from the U.S. Labor Department, which regulates company-sponsored retirement plans. Several U.S. senators, including Elizabeth Warren, Dick Durbin, and Tina Smith, have also voiced concerns about the project, claiming that crypto is too risky an investment for retirement savers.
Although there aren’t any further updates from Fidelity, Mike Novogratz, CEO of Galaxy Holdings Ltd. and one of Fidelity’s first crypto clients, hinted that it will happen soon.
A bird told me that Fidelity, a little bird in my ear, is going to shift their retail customers into crypto soon enough. I hope that bird is right. And so we are seeing this institutional march.
Fidelity said in a statement Monday:
“While we have nothing new to announce, expanding our offerings to enable broader access to digital assets remains an area of focus.”
According to WSJ, the trillion-dollar asset manager manages approximately $4.2 trillion in assets and has more than 34.4 million individual brokerage accounts.