Fidelity Digital Assets to launch Ethereum (ETH) trading for institutional investors on October 28

The leaked email reveals that Fidelity Digital Assets will be offering its institutional clients not only Bitcoin (BTC), but also Ethereum (ETH) starting October 28th. An email was reportedly sent to the client. Fidelity Digital Assets is a subsidiary of Fidelity Investments, one of the world's largest asset managers. The giant oversees more than $4.5 trillion in assets under management (AUM).

The subsidiary has now changed its mind on Ethereum and is planning to invest in the cryptocurrency. Fidelity Digital Assets is reversing its position on institutional investors. Last year, it said that demand from institutional investors was too small. Now, it is changing its tune.

The leaked email states that “investors will be able to buy, sell and transfer Ether, and have access to the same operational privilege, robust security, and customised customer service model offered for bitcoin investments today.”

“With the Ethereum merge to PoS complete, many investors are looking at Ethereum through a new lens,” Fidelity Digital Assets continued.

Fidelity Drives Ethereum and Bitcoin Adoption

The news comes after just last week it was announced that Fidelity Brokerage Services LLC had launched its new Ethereum Index Fund. According to an SEC filing, the sale started on September 26th. According to an Oct. 4 report, the fund has already generated $5 million in investments within its first few days.

Fidelity and its subsidiaries have long been a strong driver of Bitcoin adoption. Moreover, they have been working on developing new ways to make it easier for their customers to buy, sell, and hold Bitcoin. As recently as September, rumors surfaced that Fidelity may allow 34 million retail investors to trade Bitcoin.

Galaxy Digital CEO Mike Novogratz said at the SALT Forum in New York that Fidelity’s brokerage platform could offer Bitcoin trading. The Wall Street Journal quotes Novogratz:

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.
Mike Novogratz at SALT Forum

In April, Fidelity Investments announced plans to allow 401(k) retirement account holders to invest directly in Bitcoin.

Fidelity Digital Assets has partnered with Citadel Securities, Charles Schwab, Paradigm, Sequoia Capital, and other funders to form a consortium which is building a new crypto exchange called EDX Markets (EDXM). Their goal is to provide a better platform than current crypto exchanges by being more scalable and using a network of digital custodians. This move allows the financial giant to offer its products to a wider range of investors in Europe. Both partners have listed two new Bitcoin ETPs to increase the choice of crypto products on the Swiss stock exchange.

Despite the news, ETH’s price remains below the 200 day moving average. It is in neutral territory with an RSI of 43.

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