Fidelity Digital Assets Introduces ETH Trading To Institutional Clients
Fidelity Digital Assets, the crypto platform of leading asset manager Fidelity Investments, will start offering Ethereum (ETH) custody and trading services to its institutional clients from this month onwards.
The move comes on the heels after Fidelity unveiled a new Ethereum Index Fund for accredited investors, raising more than $5 million in sales. The crypto-focused institutional custody platform said last month that it was contemplating to introduce crypto trading to its retail brokerage clients. Earlier this year, Fidelity Investments introduced two exchange traded crypto funds titled, the Fidelity Metaverse ETF (ticker FMET) and the Fidelity Crypto Industry and Digital Payments ETF (FDIG).
Ethereum Trading Services to Institutional Clients
According to an email to Fidelity’s customers, the company said that it will roll out its “Institutional Ethereum capabilities” for institutional investors starting on October 28, 2022. With the move, Fidelity’s clients will be able to buy, sell, and transfer ether. Additionally, the asset manager specified that users will be able to transact with ETH using the same model provided for bitcoin investments. The email noted,
“Investors will be able to buy, sell and transfer ether, accessing the same operational excellence, robust security, and dedicated client service model provided for bitcoin investments today.”
It seems both Fidelity Digital Assets and its parent Fidelity Investments are heavily focusing on the digital asset space. In June, the crypto division announced a hiring spree in an effort to better serve its clients, who have expressed interest in investing in crypto assets. The giant asset management firm has been ramping up efforts to expand its services and products in the crypto sector.
Fidelity’s Tryst With Crypto
On Sept. 13, Galaxy Digital CEO, Mike Novogratz said that Fidelity was reportedly working toward offering Bitcoin to its 34.4 million retail investor base. As per another report, Fidelity has also been contemplating to allow individual investors to trade bitcoin on its brokerage platform. In a statement, Tom Jessop, president of Fidelity Digital Assets said,
“As the demand for digital assets continues to steadily grow and the marketplace evolves, we will continue to expand our hiring efforts.
Fidelity launched its crypto-focused institutional custody and trading platform Fidelity Digital Assets in 2018. It was launched with the aim of enabling Bitcoin (BTC) trading and custody offerings. The company received a trust charter from New York’s financial services regulator in 2019. It had also announced plans to offer Bitcoin (BTC) in 401(k) retirement accounts to its account holders.