- The institutional adoption of bitcoin continues as investment giant Fidelity looks toward digital assets.
- Mike Novogratz, CEO of investment firm Galaxy, broke the news at the Salts New York Conference thanks to “a bird in his ear.”
- Fidelity’s 34.4 million brokerage accounts may serve as the catalyst to save Bitcoin’s year.
As Bitcoin continues to underperform poorly this year, institutions are thinking outside the box to improve their offerings for retail clients.
After the rise of institutional investors in Bitcoin (BTC) in the first quarter of 2021, it was all good for the market as the market leader got to new highs. Although BTC is currently a shadow of its former self, institutional investors like Fidelity are looking to create a new investment path for their retail investors.
The move has many possibilities for retail investors who want to invest in Bitcoin to make a profit. Fidelity’s decision will bring 34.4 million retail accounts in direct investment opportunities with bitcoin.
Mike Novogratz, CEO of crypto investment firm Galaxy Digital added more to the story going around as he revealed at the New York’s Salt forum.
“A bird told me, a little bird in my ear, told me Fidelity is going to shift its retail customers into crypto soon enough, I hope that bird is right.”
This move follows BlackRock’s partnership with Coinbase also to offer crypto as an asset class to its investors.
Fidelity has long been on the side of crypto as the company backed crypto over gold, with its director Jurrien Timmer insisting that Bitcoin is gaining credibility.
“Bitcoin is gaining credibility, and as a digital analog of gold but with greater convexity, my guess is that bitcoin will, over time, take more market share from gold.”
News also broke out in April that the company plans to allow workers to save 20% of their pension in Bitcoin.
Can another mass institutional adoption save Bitcoin?
Bitcoin can have a turn of events before the end of the year, as hoped by investors. For the price of bitcoin to even go as high as $40,000, it needs the help of institutional investors or whales. Currently trading at $20,711, investors would want to diversify their portfolio with bitcoin if offered as an asset class.
Bitcoin woes compounded earlier today as it has fallen 7.59% in the last 24 hours amid the Ethereum Merge being a day away with good news for Ether. The phrase “buy the dip” could be critical to investors at this time.