- Advertisement -
- Advertisement -

Fidelity Brings Cryptos to Institutional Investors

- Advertisement -

Stockholm (HedgeNordic) – Fidelity Investments has announced the launch of a stand-alone company that will provide custody and trade execution services for cryptocurrencies to institutional investors, including hedge funds and family offices. With the launch of the new company called Fidelity Digital Asset Services, Fidelity plans to meet the increasing interest in digital assets among institutional investors.

Instead of setting up an exchange to trade cryptocurrency assets, Fidelity Digital Asset Services will use an internal order router to connect with multiple market venues for trade execution. The company will also provide institutional-grade storage solutions for bitcoin, ether and other digital assets.

“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors,” Abigail P. Johnson, Chairman, and CEO of Fidelity Investments said in a press release. “We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”

In a survey conducted by consulting firm Greenwich Associates among 141 institutional investment executives, more than 70 percent of respondents indicated that they believe cryptocurrencies will have a place in the future of the industry. Around ten percent of respondents think cryptocurrencies will remain a fringe asset class without mainstream adoptions, whereas an additional ten percent feel a regulatory crackdown will eliminate the market.

Institutional investors appear to become more involved in the market of cryptocurrencies. Yale University’s endowment managed by renowned investor David Swensen, for instance, has recently invested in a cryptocurrency hedge fund called Paradigm (read more details). These announcements come after a period of skepticism among investors towards the cryptocurrency market. The price of bitcoin, for instance, more than halved since the end of last year, with first and still most important cryptocurrency losing two-thirds of its value since reaching a peak in December of last year.


Picture © Who is Danny—Shutterstock

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Niche Opportunities in Private Credit Amid Record Dry Powder Levels

Stockholm (HedgeNordic) – The evolution of private credit as an asset class has been remarkable, attracting increasing allocations from investors. Assets under management by...

Tidan Readies Systematic Macro Launch with Linus Nilsson

Stockholm (HedgeNordic) – Stockholm-based fund boutique Tidan Capital is broadening its suite of strategies with the upcoming launch of its systematic macro initiative in...

Chelonia to Embrace Long-Biased Strategy

Stockholm (HedgeNordic) – Despite securing a spot among the top 15 best-performing Nordic hedge funds this year as a market-neutral fund, Chelonia Market Neutral...

Nykredit Hedge Funds Battle to Reverse Downtrend in Assets

Stockholm (HedgeNordic) – Despite showing improved performance, the fixed-income hedge fund trio at Nykredit Asset Management is struggling to reverse a downward trend in...

“Boring” Short Sellers Partner with Sector for Fund Launch

Stockholm (HedgeNordic) – Renowned short seller Andrew Left has been quoted as saying that short sellers are becoming “a dying breed.” Despite the departure...

Adrigo Catapults into Top Five After Strong May

Stockholm (HedgeNordic) – Adrigo Small & Midcap L/S has surged into the top five best-performing Nordic hedge funds for the year, boasting a return...

Allocator Interviews

Latest Articles

In-Depth: High Yield


Request for Proposal

- Advertisement -