According to a Wall Street Journal report, Fidelity Investments could provide its clients with access to bitcoin trading through its brokerage platform. The company is heavily involved in crypto markets and has already announced products that will give its wealthy customers access to cryptocurrency.
The new strategy will potentially expand the company’s bitcoin supply to its 34.4 million brokerage accounts, according to sources cited by The Wall Street Journal. The strategy was hinted at by Galaxy Holding, one of Fidelity’s biggest clients, CEO and crypto bull Mike Novogratz.
In a speech for the SALT conference, Novogratz stated the following, the report claims:
A bird told me that Fidelity, a little bird in my ear, will convert its retail customers to crypto soon enough. I hope the bird is right. And so we see this institutional march.
The potential supply has yet to be revealed to investment firms’ clients, but similar to other banking and financial institutions, Fidelity has said demand for Bitcoin and crypto exposure is driving these offerings.
Loyalty put to the test for their bitcoin offering
Fidelity has been under the radar of US government officials for the past few months as the company looks to expand its Bitcoin offerings and products. As Bitcoinist reported, a group of US Senators led by Elizabeth Warren sent a letter to Abigail Johnson, CEO of Fidelity.
The government officials inquired about the product and a possible violation of U.S. Department of Labor orders to allow 401(k) accounts to gain Bitcoin exposure. These accounts are used by a large majority of US citizens to save for their retirement.
With that in mind, senators viewed bitcoin and crypto as assets not worth using as a long-term investment. The letter classified the emerging asset class as “volatile, illiquid and speculative.” The document states:
While we appreciate Fidelity’s efforts to help Working Americans achieve a safer retirement, this decision is extremely troubling. Perhaps most troubling, by noting the risks of investing in bitcoin on its website and planning to limit plan participants’ bitcoin exposure to 20 percent, Fidelity is acknowledging that it is aware of the dangers associated with investing connected in bitcoin (…).
It remains to be seen whether the strategy of offering bitcoin trading on its brokerage accounts will draw the same attention from US government officials. At the time of writing, the price of BTC is trading at $22,400 with a 4% gain in the last 24 hours.
BTC price with minor gains on 4-hour chart. Source: BTCUSDT trade view
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