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Fidelity executives remain optimistic that the blockchain market’s momentum will survive into the near future.
Speaking to MarketWatch on April 8, Tom Jessop who heads the investment firm’s crypto division said that he believes crypto has opened a new chapter in traditional finance circles and things have reached a tipping point for the industry.
According to Jessop, the maturation and acceptance of crypto assets as an investment class will begin to accelerate in the coming years. According to the finance chief, there are many explanations for this, one of them is the relatively low interest rates in conventional finance.
This, along with a monetary-policy-stimulated climate, has fueled demand for crypto markets. According to the Fidelity executive, this environment is unlikely to improve anytime soon:
“I think we’ve reached a tipping point. I think you’ve had the accumulated experience of now roughly 12 years of the Bitcoin blockchain being operative since the genesis block in early 2009. And the pandemic, quite frankly, was a catalyst for institutional adoption, and specifically Bitcoin and the narrative, or use-case, around digital gold,”
The narrative has been compounded, according to Jessop, by massive monetary support from central banks and policymakers in reaction to the pandemic.
After the outbreak of the pandemic, the United States has spent more than $6 trillion in stimulus funds, all of which newly minted by the Federal Reserve.
Jessop is not the only finance executive to believe that Bitcoin and crypto has reached a tipping point. In early March, Galaxy Digital CEO Mike Novogratz used the same phrase while commenting on the CI Galaxy Bitcoin ETF on Bloomberg:
“Bitcoin adoption has hit a tipping point and investors don’t want to sit on the sidelines,”
Fidelity filed paperwork with the Securities and Exchange Commission on March 24 to list a new Bitcoin exchange traded fund (ETF). The Wise Origin Bitcoin Trust intends to monitor the asset’s regular success using the Fidelity Bitcoin Index PR, a price-feed-derived index.
Todd Rosenbluth, an analyst at CFRA Research, VanEck, and Fidelity Investments, believes the SEC will accept an ETF within the next year or two.
Fidelity founded the digital asset unit in 2019 and has been incorporating digital assets into conventional investment portfolios since then.