Fidelity, the investment giant that has an estimated $6.9 trillion AUM, has told The Scoop podcast that it could start supporting Ethereum, but only if client demand exists. Fidelity’s custodial and trading tools have been in place since mid-2019, but Bitcoin is the only token supported by the platform, and despite opening the door to other tokens, it looks like it might stay that way for some time.
Fidelity Questions Ethereum’s Longevity
Asked if Fidelity would consider offering custody for the second biggest cryptocurrency, Jessop said that the firm has “done a lot of work on Ethereum”, but Bitcoin’s history and greater standing in the cryptocurrency space makes it a more tempting proposition for institutional investors.
Despite being around since 2015, Jessop said that Ethereum doesn’t have as much of a track record as Bitcoin, leading him to echo the thoughts of others and question its longevity:
How do I know that if I buy this thing, it’s gonna be around tomorrow? Like, what indication of durability or longevity do I have based on the fact that the history of this asset is 10 years old?
Fidelity Playing it Safe
Ethereum has been the de facto smart contract platform ever since its creation in 2015, single-handedly shouldering the 2017 ICO boom, but faster, more flexible platforms have come into existence since then, threatening Ethereum’s very survival. However, none has yet managed to dethrone the king of alt coins, although of course we are still very early into the battle.
Fidelity are probably wise not to commit more resources into supporting a token that could in theory be toppled by competitors, whereas Bitcoin stands out on its own in its field and has little chance of ever being dethroned itself.