According to a recent report by Bloomberg, which cites three individuals familiar with the matter, Bitcoin custody will be the first of many crypto products made available for large investors like hedge funds. The insiders indicated that Ethereum (ETH) custody is expected to be next.
“We are currently serving a select set of eligible clients as we continue to build our initial solutions,” the company said in a statement Tuesday. “Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”
In addition to Bitcoin and Ethereum, Fidelity has set its sights on other top altcoins. While speaking at the Block FS conference in New York, Tom Jessop, head of Fidelity Digital Assets, revealed that the firm is looking to expand its institutional crypto asset platform to include trading services for the top cryptocurrencies based on market cap.
“I think there is demand for the next four or five in rank of market cap order. So we will be looking at that,” Jessop said.
Fidelity launching its custody service should be a major boost for institutional adoption. As we previously reported, JPMorgan claims pension funds, asset managers and major retailers have largely steered clear of the crypto market, citing concerns over volatility, security, and illicit usage. Crossing security concerns off of the list with a reliable custody option should help convince at least some institutions to dive into the market.
The price of Bitcoin hasn’t reacted to the news and is currently down 0.17% over the last 24 hours to $3,446, giving the largest digital currency a $60.3 billion market cap.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.