Executives at investment giant Fidelity are confident that the momentum in the cryptocurrency market will continue for the foreseeable future.
Talk to MarketWatch On April 8, Tom Jessop, who heads the crypto division of the investment firm, said he believes crypto has opened a new chapter in mainstream financial circles and that things have reached a tipping point for it. ‘industry.
Jessop said the maturation and adoption of crypto assets as an investment class will continue at a rapid pace in the years to come. There are a number of reasons according to the CFO, one of which is the extremely low interest rates in traditional finance.
This, coupled with an environment stimulated by monetary policies, has boosted momentum in the crypto markets. The Fidelity executive said that environment is unlikely to change anytime soon:
“I think we’ve reached a tipping point. I think you have accumulated the experience of about 12 years of running the Bitcoin blockchain since the genesis block in early 2009. And the pandemic, quite frankly, has been a catalyst for institutional adoption, and in particular Bitcoin and the narrative, or use case, around digital gold, ”
Jessop added that the narrative has been exacerbated by the unprecedented monetary stimulus from central banks and governments in response to the pandemic.
Since the start of the pandemic, U.S. stimulus packages have exceeded $ 6 trillion, with much of that money freshly minted by the Federal Reserve.
Jessop isn’t the only financial executive who believes Bitcoin and crypto have reached a tipping point. In early March, Mike Novogratz, CEO of Galaxy Digital, used the same phrase when commenting on the CI Galaxy Bitcoin ETF on Bloomberg:
“Bitcoin adoption has reached a tipping point and investors don’t want to stay away,”
On March 24, Fidelity filed documents with the United States Securities and Exchange Commission to list a new Bitcoin exchange-traded fund (ETF). The Wise Origin Bitcoin Trust aims to track the daily performance of the asset using the Fidelity Bitcoin Index PR, an index derived from multiple price streams.
CFRA Research, VanEck and Fidelity Investments analyst Todd Rosenbluth estimated that the SEC would likely approve an ETF in a year or two.
Fidelity established the Digital Assets Unit in 2019 and has since integrated digital assets into traditional investment portfolios.