Fidelity, the investment giant that has been eyeing an entrance into cryptocurrency markets since September 2018, is to launch institutional crypto trading “within weeks” according to Bloomberg. The outlet cites “a person familiar with the matter” but adds little more to support the claim than to say that trading on a range of digital currencies is imminent and that only institutional customers will be catered for. Fidelity is currently only focused on Bitcoin according a spokesperson, although the group does hope to “continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors.”
Supposed March Deadline Missed
Fidelity announced in October 2018 that they were planning to enter the cryptocurrency market, with details leaking out over the following months regarding plans and schedules, culminating in an alleged target of March 2019. This target has clearly been missed, but it doesn’t seem too long before the platform is rolled out and one of the largest asset management firms in the world, with an estimated $6.9 trillion AUM, enters the market. The reaction to the news in the crypto world was overwhelmingly positive, given that the platform will involve the physical buying and selling of cryptocurrencies rather than futures-style cash settled contracts.
Pump it Fidelity
— WildWestTrades (@WildWestTrades) May 6, 2019
— Joe Weisenthal (@TheStalwart) May 6, 2019
Some serious bullish news coming in at the beginning of this week (Fidelity announcing crypto trading), perfect storm for another push up. pic.twitter.com/IrZ39rT9S5
— The Crypto Dog? (@TheCryptoDog) May 6, 2019
Ethereum Futures on the Horizon?
The Fidelity news was accompanied by reports that the Commodity Futures Trading Commission (CFTC) is ready to approve Ethereum futures if it meets all the required criteria. Bitcoin futures have been offered since December 2107, which many have argued contributed hugely to the severity of the 2018-19 bear market, so whether Ethereum futures would be considered bullish for the value of the token is up for debate. Seeing as futures contracts are usually cash settled, an Ethereum futures platform wouldn’t bring any extra liquidity into the market, meaning that their arrival would likely be neutral at best.