The pro-bitcoin financial giant is reportedly considering allowing over 34 million individual investors to buy bitcoin through its online brokerage.
According to the Wall Street Journal, Fidelity Investments is exploring to allow private investors to invest in bitcoin through its brokerage platform – Fidelity Digital Assets. Being “crypto curious”, Fidelity offers its customers to choose a crypto ecosystem built around the metaverse, and digital payments to grow in lock step with industry innovations.
Fidelity, one of the world’s largest asset managers, created the Bitcoin fund in 2018 that allowed institutional investors and hedge funds to trade bitcoin. The bitcoin index fund crossed $125 million in investments within a few months.
Also, customers can invest in commission-free ETFs – Fidelity Crypto Industry and Digital Payments ETF, and Fidelity Metaverse ETF. Notably, Fidelity is the first brokerage company with an immersive educational experience in the metaverse. The Fidelity Stack, their virtual office in Decentraland, is where you can drop in and build your investment knowledge in a fun, gamified experience.
Fidelity’s bitcoin index fund is just one example of how the traditional financial world is beginning to embrace digital currencies. As more and more institutions take steps to enter the market, it is likely that we will see even more rapid growth in the coming years.
Furthermore, Fidelity is the first major financial services organization to allow customers to add crypto assets to their 401(k) retirement plans in early 2022. The corporation is a behemoth in the retirement industry, with more than $2 trillion in 401(k) assets and the administration of more than 23,000 pension plans throughout the country.
Employees could add Bitcoin to their 401(k) plans by late 2022, provided their employer allows it, according to a corporate announcement in April.
Though this move was clearly a watershed moment for cryptocurrency, many analysts have been quick to point out that cryptocurrencies may be a bad pick for long-term investors hoping to develop value.
Democrat senators wrote to Fidelity Investments, wondering why the corporation would expose its 401(k) participants to Bitcoin. Legislators labelled cryptocurrency investments as “volatile, illiquid, and speculative.” In April 2022, Fidelity Investments stated that people would be able to devote a portion of their retirement plan funds to Bitcoin.
Senators argue that, while 401(k) members are privileged to have access to a retirement plan, there are individuals who cannot afford to contribute to their employer-sponsored plan and will instead utilize their earnings for personal and family necessities.