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Fidelity Lauds Bitcoin By Calling It As ‘Aspirational’ Store of Value’
Various Wall Street players like JP Morgan to Wells Fargo, are involved in the constant technological upgradation like blockchain deployment and buzzing crypto and tokenization trend, yet another banking giant, Fidelity Investments is reportedly appraising and investing into the budding industry.
Fidelity perceives the pioneer cryptocurrency ‘Bitcoin’ as an ‘aspirational’ store of value and an ‘insurance policy’.
The establishment of the ‘Fidelity Digital Asset Servicing’ wing (FDAS) is their prime vision to provide a full-fledged services enterprise-grade platform for digital assets in the long-run. FDAS would offer custody and trade execution services for the cryptocurrencies especially meant for the institutional-grade investors.
According to their investment thesis on bitcoin submitted by ‘Ria Bhutoria’, the director of research at Fidelity Digital Assets, many investors consider bitcoin to be an aspirational store of value in that it has the properties of a store of value but has yet to be widely accepted as such.
Tom Jessop, President of Fidelity Digital Assets, had this to says that: “We started exploring blockchain and digital assets several years ago, and those efforts have been successful in helping us understand and advance our thinking around cryptocurrencies.”
Snippets of the thesis:
Although investors class ponders bitcoin as an aspirational store of value as the pioneer crypto-asset has the properties of a store of value, it is yet to be widely accepted.
Another striking aspect is that the silver lining of bitcoin’s volatility, during its inception and growth stage, it is a major catalyst that lures with the attention, development, and innovation. Demand/supply is the equation for the underlying price of any asset, with that said, they cited in reference to a good store of value as it is essential for protecting against the depreciation of real value in the long run. One of bitcoin’s most novel innovations is its unforgeable digital scarcity.
The consequences of record levels of low-interest rates coupled with an unprecedented level of global monetary and fiscal stimulus and deglobalization are stimulating the awareness and adoption.
Constant inflationary phase drives the major trend, the wealth transfer to a millennial demographic, in addition, has a conducive opinion on digital assets.
On a wider perspective, the underlying price action of BTC has been impressive, it has spiked since mid-March, from $3,858 to the recent highs of $11,420 which is 196% rallies.