Fidelity Urges the SEC to Approve A Bitcoin ETF As Another BTC Futures ETF Filed

Fidelity argues firms have to “fulfill financial backer need for direct openness to Bitcoin,” highlighting the need for a physically-backed Bitcoin ETF as the Bitcoin market has “developed and can uphold” the laws.

Fidelity Investments has urged the US Securities and Exchange Commission (SEC) to approve its Bitcoin exchange-traded fund (ETF) in a private meeting, reported Bloomberg.

Tom Jessop, the president of Fidelity Digital Assets (FDA) along with other executives, met with SEC officials over a video call on Sept. 8, according to a recent filing.

Laying down the reasons why the regulator should approve the proposed products, the executives pointed to increased investor appetite for crypto assets, the growth of Bitcoin holders, the existence of similar funds in other countries, and the regulator being slow to embrace, according to a presentation from the meeting.

“Bitcoin prospects-based items are not a vital interval venture before a Bitcoin ETP,” Fidelity said. “Firms ought to have the option to fulfill financial backer need for direct openness to Bitcoin” through ETFs enrolled under those 1930s laws, “on the grounds that the Bitcoin market has developed and can uphold them.”

In March, Fidelity filed the application for its Bitcoin ETF called the Wise Origin Bitcoin Trust.

According to Rebecca Sin, ETF Analyst at Bloomberg, the listing of crypto ETFs in the US “could boost ETF revenue to 20 billion over the next five years.”

As we have reported, several firms have filed their applications for a physically-backed Bitcoin ETF. In fact, the first such application was filed by Winklevoss twins eight years back, but not a single one has been approved yet.

“A progressively wide scope of financial backers looking for admittance to Bitcoin has highlighted the market need for a more differentiated arrangement of items offering openness to advanced resources for match interest,” Fidelity representative Nicole Abbott told Bloomberg.

However, recently, SEC Chair Gary Gensler did signal his openness to a futures-backed Bitcoin ETF as it offers increased investor protection.

Since Gensler’s comments, several firms have also filed for a Bitcoin Futures ETF, and the industry experts expect one to get approved by the end of this year.

On Tuesday, ETF Series Solution also filed for a Bitcoin futures ETF with Bitwise Index Services.

The Bitwise Bitcoin Strategy ETF was filed under the Investment Company Act of 1940 and seeks to invest in bitcoin futures and other financial products, including “Canadian-listed funds that provide exposure to bitcoin.”

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Author: AnTy

Fidelity Digital Assets Exploring the Possibility to Offer Yield Funds, Stablecoins, and DeFi Tokens

Fidelity Digital Assets Exploring the Possibility to Offer Yield Funds, Stablecoins, and DeFi Tokens

Fidelity Digital Assets also plans to increase its employee headcount by up to 70% by the end of the year. Meanwhile, its survey reveals over 60% of US investors are neutral to positive about a Bitcoin ETF.

Fidelity Investments is growing its digital assets team to expand its cryptocurrency-related products in response to the increasing interest from financial advisors, family offices, and other institutional investors.

Tom Jessop, president of Fidelity Digital Assets, said in an interview that the company is planning to increase its employee headcount by up to 70% by the end of the year.

Fidelity’s digital asset arm that provides institutional services including trade execution and custody is also exploring the possibility of offering yield funds and other products that may involve stablecoins or DeFi tokens, said the managing director, Peter Jubber.

“All of these are candidates for us as we begin this exploration.”

“Could they result in actual products? Early days.”

Fidelity also published a survey this week that showed that in the US, 79% of family offices have a neutral, positive view of digital assets. The survey of 1,100 professionals was conducted between early December and early April.

It further showed that factors such as fear of inflation due to financial stimulus was a catalyst for many investors to enter the crypto market.

“A catalyst for a lot of industries was the start of the pandemic.”

“Our clients said the factor to get them off the fence were the macro economic issues in the pandemic.”

For the first time, Fidelity surveyed Asian investors and found them to be the most accepting of digital assets, with more than 70% of those surveyed currently invested in them.

Investors are particularly looking for institutional investment products to hold digital assets. More than 60% of U.S. investors express a neutral to positive view about a potential Bitcoin exchange-traded fund (ETF). Fidelity itself has filed an application with the SEC for a Bitcoin ETF.

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Author: AnTy

Fidelity Predicting $100 Million per Bitcoin by 2035

Boston-based investment giant Fidelity Group is injecting a heavy dose of hopium in the market with its latest “very special” webinar, where it took a deep dive into Bitcoin and its possible effects on the market.

Fidelity, which also has its own crypto arm, Fidelity Digital Assets that builds enterprise-grade bitcoin custody services for large institutions, isn’t new to the space as it first started mining Bitcoin (BTC) in 2014 and then Ether as well.

Now, the firm is putting out bullish reports on Bitcoin and sees the leading digital asset hitting $1 million before this decade is over and a whopping $100 million by 2035.

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This much hopium was difficult to digest for some as one Redditor noted, “Bitcoin is not gonna reach $100 million. That would give it a market cap of $2,100 trillion. The total wealth of the entire world is $418 trillion.”

Jurrien Timmer, Director of Global Macro Fidelity, hosted the event that shared several charts to help the audience understand Bitcoin.

One of the charts depicts Bitcoin’s adoption curve based on active addresses count and compares it with broadband subscriptions, Internet users, and mobile phone subscribers.

The webinar also discusses purchasing power of various assets, not covering Bitcoin, where stocks are the clear winner at $3.9 billion, followed by bonds at $19.9 billion, and cash at $326k compared to the inflation index. The purchasing power of $1 has the least in fiat at a mere $0.02. Even the safe haven, gold, isn’t doing much better at $94 when the inflation index has a reading of $65.

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Author: AnTy

There’s “More Interest in Ether,” says Fidelity Digital Assets President

There’s “More Interest in Ether,” says Fidelity Digital Assets President

And they “want to be ahead of that demand,” something also recognized by SkyBridge Capital which has rotated its Bitcoin profits into Ether. Client type is also expanding from hedge funds and family offices previously to now cover retirement advisers and corporations.

Fidelity Digital Assets is looking to increase its staff by about 70% as demand for cryptocurrency services from institutional investors continues to be strong.

FDA is a unit of Boston-based asset manager giant Fidelity Investments Inc.

The company plans to add about 100 new employees in technology and operations in Dublin, Boston, and Salt Lake City, said Tom Jessop, president of Fidelity Digital Assets, in an interview.

This increased headcount will help the business develop new products and further expand into the crypto sector besides Bitcoin, he said.

Last year “was a real breakthrough year for the space, given the interest in Bitcoin that accelerated when the pandemic started,” said Jessop adding.

“We’ve seen more interest in Ether, so we want to be ahead of that demand.”

Besides Fidelity Digital Assets, as we reported, a big bitcoin proponent, SkyBridge Capital, has also ventured into the second-largest cryptocurrency.

The company trimmed its position in BTC to keep it from growing further and rotated “a small amount of the capital into Ethereum,” revealed Co-Chief Investment Officer​ Troy Gayeski in an interview.

Gayeski defined Bitcoin as the market leader in terms of store value and Ethereum as the market leader in terms of transaction use.

Institutional investor demand for Bitcoin, Ether, and other crypto-assets is only rising, said Fidelity Digital Assets’ President.

He further noted that while previously their clients tended to be hedge funds and family offices, they have now expanded to retirement advisers and corporations who want to hold crypto as an asset class.

“Bitcoin has been the entry for a lot of institutions,” Jessop said. “It’s now really opening up a window on what else is going on in the space.” A big shift is in “the diversity of interest” from new and existing customers, he said.

The company is also pushing to offer trading throughout the week, as is the norm in the cryptocurrency industry, unlike the traditional market.

“We want to be at a place where it’s full-time for most of the week.”

Besides trading and holding Bitcoin, Fidelity Digital also allows its institutional customers to use the crypto asset as collateral against cash loans through its partnership with BlockFi.

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Author: AnTy

TP ICAP Teams Up With Fidelity & Standard Chartered to Launch A Cryptocurrency Exchange

TP ICAP Teams Up With Fidelity & Standard Chartered to Launch A Trading Platform for Institutional Investors

The world’s largest interdealer broker, TP ICAP, is set to roll out a crypto trading platform. The firm announced that it has partnered with UK banking behemoth Standard Chartered and Fidelity Investments to launch the crypto exchange.

According to Reuters, the new crypto trading platform by TP ICAP will launched by the end of 2021, will allow its clients to first trade Bitcoin (BTC), the leading crypto, before adding other cryptocurrencies like Ether (ETH), more digital assets are to be added at a later date.

The new platform is set to provide the post-trade infrastructure that will involve a network of virtual digital asset custodians coupled with distinct execution and settlement that will help reduce credit risks.

The deal involves the platform utilizing Zodia Custody, the virtual assets custody offshoot owned by Standard Chartered and Northern Trust. Zodia Custody was launched in 2020 to provide custodial solutions to institutional investors. In addition, Flow-Traders, an Amsterdam-located market maker, will offer liquidity solutions to the new exchange.

As per the report, the new exchange is awaiting licensing by the Financial Conduct Authority (FCA), United Kingdom’s financial overseer. It is important to note that both Fidelity Investments and Standard Chartered have not invested in the new venture yet.

The head of digital assets at TP ICAP, Duncan Trenholme, explained that crypto has become a new attraction for investors looking for a new asset class in the recent months.

“In most of our conversations with clients, they want a separation of custodial roles from execution capabilities which is opposite to the models that exist currently.”

In the past, TP ICAP has widened its reach in the world’s capital markets through the provision of new data as well as analytic services and the introduction of fresh products. The firm debuted in the crypto derivative sector in 2019 by letting its clients purchase as well as sell the Chicago Mercantile Exchange’s Bitcoin futures. The firm is in the final stages of adding support for Bitcoin forward contracts settlements, and an announcement is expected soon.

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Author: Joseph Kibe

Fidelity Amasses over $100 Million from 83 Investors for its Bitcoin Fund

One of the world’s largest asset managers, Fidelity Investments’ Bitcoin Fund raised $102 million from investors since its launch in August last year.

According to the filing with the US Securities and Exchange Commission (SEC), the asset manager amassed a total of $102,350,437 from 83 investors with a minimum investment of $50,000 each, in a matter of nine months.

Last month, Morgan Stanley’s standalone Bitcoin Fund, which is offered in partnership with NYDIG, aggregated $29.4 million in its first two weeks.

The pooled investment fund is a passively-managed vehicle that Fidelity sells to qualified investors through the company’s subsidiary Fidelity Digital Funds.

Wise Origin Bitcoin Index Fund I, LP is managed by chief strategist Peter Jubber.

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Author: AnTy

Fidelity Launches Digital Asset Analytics Tool For Institutional Investors

Financial services firm Fidelity investment has launched a digital assets analytics platform for institutional investors.

Fidelity’s Sherlock To Guide Institutional Investors

Fidelity named the platform Sherlock, which is a digital assets analysis tool that will provide fundamental and technical analysis for fund managers and investors.

According to the firm, Sherlock will collate valuable pieces of information on the blockchain, market, social sentiment analysis, as well as industry news into a single portal.

The platform will also research crypto-assets relying on quality institutional data providers coupled with the provision of unique analytics to guide investors.

Fidelity’s Sherlock is expected to provide much-needed competition against existing solutions produced by companies like Messari.

In 2018, Messari launched a data solution service and had gained valuable recognition worldwide by integrating with Kaiko’s Rest API.

Other giant forces to be reckoned with in the provision of data and analytics are Dune Analytics, Glassnode, Skew, Coin Metrics, and Santiment.

Speaking on the new development, Kevin Vora, Vice president, Product Management, Fidelity Center for Applied Technology (FCAT), said Sherlock would deliver comprehensive data and deep analytics as clients will no longer face numerous irrelevant resources.

Fidelity Dominating the Crypto Space

Besides developing Sherlock to help institutional investors, Fidelity investment has been making significant contributions to the crypto space.

Earlier, Fidelity Charitable, the charitable arm of the mutual fund giant, reportedly raised $28 million in cryptocurrency donations.

The acceptance of cryptocurrencies as part of donations for the non-profit was a welcome development in the crypto space.

More importantly, the investment firm plans to launch its bitcoin exchange-traded fund (ETF) for digital assets and virtual currency, per Form S-1 filed with the Securities and Exchange Commission.

While SEC is yet to approve any firm to date, Fidelity might be feeling lucky due to its track record in the traditional finance space.

Given the prevalence of existing data and analytics solutions for institutional investors, observers will be eager to see if the newly introduced Sherlock solution by Fidelity investment will also turn things around.

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Author: Jimmy Aki

Fidelity Increases Its Stake in the First Hong Kong Regulated Crypto Exchange, OSL

Fidelity Investments, a leading global asset manager interested in crypto, has increased its capital allocation to BC Technology Group. This firm runs the first crypto asset exchange to be licensed in Hong Kong, OSL. According to the regulatory filing, Fidelity increased its ownership stake from 5.29% to 6.29% after acquiring an additional 3.3 million shares at HK$52.3 million ($6.7 million).

Before this event, Fidelity’s shares at BC Technology stood at 17,795,500, an investment that the asset manager acquired last year at a rough figure of $14 million. The latest increment is a sign of the bullish outlook in being exposed to Hong Kong crypto markets where regulators seem to have been slowing capital inflows. Notably, BC Technology raised around $90 million in a top-up share placement last week.

Having received the Hong Kong license, OSL crypto exchange might be well onto the path of exponential growth. This much-coveted license is issued by the Hong Kong Securities and Futures Commission, which means that OSL now gives crypto exposure to both retail and institutions. The exchange recently touted its status as the world’s ‘first SFC-licensed, listed, digital asset wallet-insured, Big-4 audited digital asset trading platform for institutions and professional investors.’

Going by such fundaments, Fidelity’s capital scaling in Asia comes as no surprise; in fact, the firm recently invested in a Singapore regulated fund manager dubbed Stack Funds in a move that will enable investors to purchase and store crypto assets. Fidelity also launched a Europe based unit towards the end of last year; this particular entity was launched in the United Kingdom and will focus on extending Fidelity’s services to the larger European market.

Overall, Fidelity has had quite a good run in the crypto space; its CEO, Abigail Johnson, a crypto enthusiast, recently revealed that their custody operations have been ‘incredibly successful.’ Having launched its Bitcoin fund in early 2020, Fidelity targets investors who can invest a minimum of $100,000. Per the company’s latest updates, an estimated 36% of institutional investors have exposure to BTC or other crypto assets.

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Author: Edwin Munyui

Fidelity-backed OSL Becomes World’s First SFC-Licensed & Insured Crypto Exchange

Fidelity owned BC Technology’s OSL Digital Securities has finally obtained the Securities and Exchange Commission’s license to become the world’s first SFC-licensed, listed, digital asset wallet-insured, Big-4 audited digital asset trading platform for institutions and professional investors.

One of Asia’s most prominent digital asset platforms for investors, OSL is now licensed to conduct Type 1 (dealing in securities) and Type 7 (automated trading service (ATS)) regulated activities.

Besides the Hong Kong licenses, OSL has also applied to the Monetary Authority of Singapore for a digital asset license under the Payment Services Act.

OSL can now legally operate regulated brokerage and automated trading services for digital assets. Once it goes live, which is to be announced in the coming weeks, OSL will offer trading access to Bitcoin, Ethereum, and other cryptos along with selected security token offerings (STOs). OSL CEO Wayne Trench said,

“Institutional investment in Bitcoin and other digital assets has rapidly accelerated over the past several years, and has entered a new era of growth in Hong Kong with licensing.”

“Institutions, and other professional investors, including HNWIs and family offices, can now trade digital assets with the region’s most comprehensive and trusted digital asset platform in OSL.”

The company already opted into SFC’s virtual asset regime, and now it has completed its rigorous vetting program.

According to the official announcement, the same heightened level of regulations has applied to digital assets that govern the securities markets so clients can trade with confidence under the safeguards they are accustomed to.

OSL customers will have to undergo “rigorous” KYC and AML measures while benefitted from the additional insurance protection on digital assets. OSL Head of Distribution and Prime Matt Long noted,

“Licensed entities are the future of digital assets and capital markets in the digital age, and professional investors, hedge funds, and family offices are now rapidly increasing portfolio allocations to digital assets such as Bitcoin.”

The digital platform had “exceptional” growth in 2019 and the first half of 2020 with a year-on-year revenue increase of 47%, driven by annualized trading volumes of $28 billion in the first six months of the year.

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Author: AnTy

Fidelity Digital to Custody BTC as Collateral for BlockFi’s USD Loans to Institutions

Fidelity Digital Assets will now allow its institutional customers to use their Bitcoin as collateral against cash loans.

This new offering has been introduced in partnership with blockchain startup BlockFi, which announced on Wednesday that it is “thrilled” to support “Fidelity’s entrance into the digital asset financing space.”

“Having an ability to finance positions is a critical component of financial services infrastructure, and this collaboration reflects an exciting development for the digital asset ecosystem,” said Zac Prince, CEO and founder of BlockFi.

BlockFi will be offering US dollar loans to institutional clients holding BTC as collateral in custody accounts at Fidelity Digital Assets (FDA), the unit of Boston-based asset manager Fidelity Investments. Christine Sandler, Head of Sales and Marketing for FDA said,

“We continue to see demand for increased capital efficiency from institutions that maintain long bitcoin positions, and with this collateral agent capability, our customers seeking that efficiency can access more opportunity with the capital that they trust us to keep safe.”

Cash will be offered worth 60% of loans backed by the digital asset with “room for client-level customization” and even adjusted to meet large firms’ needs, said Prince.

Combining risk-managed loan agreement with custody furthers the opportunity for institutions in the digital asset space. Sandler said,

“The business and market momentum we’ve seen this year have reinforced our belief that institutional investors are looking for a more comprehensive offering in the digital assets space.”

With this new offering, FDA is entering into the “thriving lending market” of digital assets that target those Bitcoin investors who want to turn their cryptocurrency into cash without selling.

Hedge funds, crypto miners, and over-the-counter trading desks are the potential customers, Tom Jessop, president of FDA, said in an interview with Bloomberg. He sees the loans to be longer-term than the typical repo trade.

According to him, holding BTC to back loans is “a foundational capability,” and “as the markets grow, we’d expect that this becomes a fairly important part of the ecosystem.”

Right now, BlockFi offers 8.6% APY for users that HOLD BTC on their platform.

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Author: AnTy