We already stated in our recent post that financial service giant Fidelity Investments is planning to enter the cryptocurrency ecosystem.

Fidelity Investments has been one of the prime providers of 401(k) services and other retirement products to Americans, 401(k) plan is a qualified employer-sponsored retirement plan

The firm is the fourth largest asset manager with $2.4 trillion in assets under management, already allows certain clients to view their cryptocurrency holdings alongside their other accounts in their portfolio. If at all this financial service firm can launch a digital asset exchange, it would be the remarkable development for crypto-avenue by a top Wall Street firm.

“Fidelity entering the market represents a major development for the crypto community. It brings crypto assets into the reach of more retail investors, which will then bring more self-directed venture capitalists and those under some form of external financial planning advisory.

I am interested to see what products Fidelity will offer and whether this initiative will then lead to ETFs or similar offerings since Fidelity already offers a range of wealth management and personal investment products and services. I am also interested to see if US investors can and will hold crypto in their IRA or 401k retirement plans.” According to Rory Manchee, Head of Enterprise Sales at Brave New Coin.

He anticipates based on his recent experience that prime necessity arises for robust portfolio tools and analytics for enabling investors well equipped on several aspects of trading, right from wallets to exchanges, from custody to transfer, from research to reliable market data.

While Rafael Delfin, Head of Research at Brave New Coin ponders that: "Late last year, a new crypto exchange, Binance, surprised the financial world after revealing a $7.5 million profit within their first three months. If that feat did not catch the attention of fund managers, bankers, and investors, they surely must have noticed the exchange’s $200 million profit in their second quarter.

Thanks to Binance, we saw that a single crypto exchange can top the quarterly profits of Germany’s biggest bank. As a result, the largest financial institutions around the world are rushing to secure a strategic presence in the crypto asset space, through both cryptocurrency and tokenized security exchanges. Cryptographic assets are used by roughly 0.34% of the world population, implying an enormous potential for an increase in crypto-related financial services.

He thinks that reputable crypto exchanges are likely to function with regulated broker-dealer licensing in order to flourish their current token listings in the near future.

Coinbase has currently been spearheading such initiatives, the U.S. based exchanges Poloniex and Bittrex have been the strong counterparts to test their luck in a similar way in the forthcoming months. Simultaneously, the institutional giants would be keen on opportunities to enter the same trajectory, either through M&A deals or by pilot projects.

Fidelity’s move marks yet another instance of growing institutional interest in cryptocurrencies. We witnessed similar moves in the recent past, such as, the announcement by Goldman Sachs, when it made the first hire for its cryptocurrency markets unit, Barclays, which is reportedly considering opening a crypto trading desk and so is JP Morgan.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards -84 levels (which is bearish). Hourly USD spot index was at shy above 97 (bullish), while articulating (at 08:06 GMT).

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