The Future of Ether at Fidelity Digital Assets
Tom Jessop, president of Fidelity Digital Assets, recently hinted at the possibility of adding support for Ether (ETH) by 2020, contingent on market demand. In an interview with TheBlock, he enthusiastically noted, “We’ve done a lot of work on Ethereum. We intend to support it in the New Year. We’re very led by our clients.” This spirited declaration indicates that Fidelity is keeping its ear to the ground, ready to scoop up ETH if the institutional appetite calls for it.
Challenges in Institutional Adoption
Jessop identified some significant hurdles preventing institutional players from diving into crypto headfirst. Price volatility can make even the most seasoned investors break into a cold sweat. Further complicating matters, the current landscape suffers from regulatory ambiguity and a lack of historical data. He articulated this challenge succinctly, saying, “How do I know that if I buy this thing, it’s gonna be around tomorrow?” It’s a fair point; after all, trust is the bedrock of investment.
Time as a Healer
Fortunately, Jessop believes that many of these barriers are not permanent fixtures in the crypto world. He maintains optimism about resolution over time, arguing that as the market matures, investors will gain a more profound understanding of the longevity and resilience of assets like ETH. Consider it like waiting for your favorite restaurant to build a reputation before you decide to try it.
Who Does Fidelity Cater To?
It’s worth noting that Fidelity’s cryptocurrency trading platform, which launched in March, is not designed for retail investors with a penchant for impulse buys. Instead, Fidelity is leaning heavily into catering to hedge funds, family offices, pensions, and endowments. After all, if anyone understands how to handle large sums of money responsibly, it’s these institutional investors.
Focus on Safety
In a related note, Kathleen Murphy, president of Fidelity’s personal investing division, recently acknowledged their cautious stance on offering cryptocurrencies via retail trading platforms. This, she explains, is to protect clients from the inherent risks associated with the volatile crypto market. It appears Fidelity is playing a high-stakes game of chess, making calculated moves while navigating the tumultuous waters of cryptocurrency.
The Rise of Ether Futures
As Fidelity capitalizes on Bitcoin’s institutional adoption, the race is on to bring Ether into the fold. There’s buzzing anticipation regarding Ether futures, which could serve as a catalyst for expanding the crypto market. By introducing futures for ETH, Fidelity could provide a level of security and predictability for players in the crypto arena.
Conclusion: A Watchful Eye on Ether
As we brace ourselves for what the New Year may bring, investors are eagerly watching Fidelity’s moves. The potential inclusion of Ether could be a game-changer, marking a significant leap toward broader institutional adoption and acceptance of cryptocurrencies.
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