Fidelity driving into Crypto Lane — Top 5 Implications — Cautiously Bullish

This week has started on a high for the cryptocurrency Industry as Fidelity is all set to launch a Crypto trading platform. It is perhaps the biggest news in recent times that can surely take the whole crypto industry to greater heights.

The company will be officially called as Fidelity Digital Assets that will provide an enterprise-grade custody solution, a cryptocurrency trading platform and consulting services 24 hours a day all through the week. It is specially designed to align with blockchain’s always-on trading cycle. Let’s consider the broader implications of this mega news for the crypto industry itself:

  1. For those who are not aware, Fidelity Investments is the fifth largest asset manager in the world providing financial services worth $7.2 trillion across the globe. It includes customer assets, providing clearing, custody and investment services for more than 13,000 institutional advisory firms and brokers. Now, it is finally entering into the cryptocurrency market which means that there is a demand for cryptocurrency assets. The giant didn’t just wake up overnight. They were planning and planning and planning and carefully crafted and launched.
  2. It will present cryptocurrency as a serious investment option for investors like Family offices and Hedge funds. They have been shying away so far, largely due to the Custodian issues surrounding digital assets. But now, with a giant asset management monster protecting your hard-earned digital assets, you can sleep safely (no pun intended).
  3. This paves way for 2019 to be the year of Wall Street driving their lambos to Crypto Lane. This, coupled with an investment of 16 million dollars in BitGo by Goldman Sachs are signs of better things to come.
  4. Not only the market will witness huge liquidity we should also see Bitcoin touch the 15k dollar mark by June next year.
  5. Other sleeping or dreaming or partially daydreaming giants will wake up to this. The boards of these giants will not let them sleep anymore. Have to do SOMETHING. Need to make some noise. It’s all bullish.

However, the continuing issues of Tether, wash trades, whales manipulation, Bitmex overleverage etc. are continuously dampening the spirits. So trade with caution. Also, for the first time in the history of Bitcoin — 2008 onwards, this is the first traditional stock and bond crisis brewing up. As of now, I am undecided as to how this will affect the crypto markets. Early signs are that there is pressure but the market is so tiny and nascent that there shouldn’t be many spills over. I am yet to decide and hence I remain cautiously bullish.