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Fidelity Digital Assets To Offer Institutional Ethereum Capabilities To Clients


Fidelity Digital Assets, the Cryptocurrency subsidiary of Fidelity Investments (an asset manager with $4.5 trillion worth of assets under its management), has launched a new crypto investment product.

It is ready to offer Ethereum custody and trading services to its institutional investors and traders later this month. This was made known through a Tweet post from one of the email recipients.

According to the tweet, Fidelity Digital Assets sent an email to its clients, telling them about the new custody and trading services. This service will become fully functional by October 28, 2022.

Based on the content of the email, Investors and traders will have the opportunity to transfer, buy or sell Ether in the same way some of them do with the firm’s current Bitcoin (BTC) investments. The asset manager explained that the finalization of the Ethereum Merge means many investors and traders will have a new perspective on Ethereum.

The Merge upgrade helped Ethereum shift to the environmentally-friendly proof-of-stake (PoS) consensus mechanism. Fidelity Digital Assets has been a long-term supporter of cryptocurrencies like Bitcoin for a long time. The firm believes in crypto as it sees it as a more advanced form of money rather than the technology powering it. 

Impact On The Crypto Market

The new announcement follows Fidelity’s launch of the Ethereum Index Fund earlier this month. According to an SEC filing on October 4, the fund raised more than $4 million on its first sale last month.

The good news is that the sale was from a single investor. However, the announcement didn’t affect the price movement of the second-largest crypto in the world. Ethereum (ETH) and other cryptocurrencies have declined since the start of 2022.

Hence, many crypto investors lost their investments, while some crypto businesses now run into huge debts. Five months ago, Fidelity Digital Assets disclosed plans to grant its 401(k) retirement account holders the opportunity to invest in Bitcoin (BTC).

The crypto company also said up to 90% of its most prominent investors wanted to invest in Bitcoin and other cryptocurrencies based on a recent poll it conducted. Last month, Galaxy Digital chief executive, Mike Novogratz, stated that Fidelity Digital Assets’ ultimate goal was to offer Bitcoin (BTC) investment options to its more than 34 million retail traders and investors.

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