Category Archives: Fidelity digital assets

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Adjusted Bitcoin Transaction Volume Reveals Healthy Economic Activity on Blockchain

  • Fidelity Digital Assets finds that filtering and adjusting Bitcoin blockchain transaction volume leads to a more realistic measure of Bitcoin economic activity

Fidelity Digital Assets has released a report which shows that cumulative raw transaction volume on the Bitcoin blockchain is overstated by 3.3 times, and that adjusting the transaction volume by using a couple of filters gives a much better idea of real economic activity on the blockchain.

Specifically, the raw Bitcoin blockchain transaction volume includes change transactions, which is Bitcoin being sent back to the same address during a transaction, and therefore does not represent actual transaction volume. Also, transactions may be counted multiple times due to successive spends and transfers resulting from exchange processes and mixers.

Coin Metrics filters out both the change and counting transactions multiple times, and finds that the real Bitcoin blockchain transaction volume since Bitcoin first launched is USD 2.2 trillion, as opposed to raw cumulative volume of USD 7.5 trillion.

That being said, even these adjusted numbers indicate that economic activity on the Bitcoin blockchain has been quite healthy, with over USD 500 billion of real transaction volume during 2018 and 2019, and USD 1 trillion of transaction volume during the bull run of 2017, as opposed to relatively minuscule transaction volumes in the years prior to 2017.

 

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Fidelity to Offer Crypto Trading in a Few Weeks

Fidelity to Offer Cryptocurrency Trading in Few Weeks

Boston-based financial service firm Fidelity Investments is likely to open up its Bitcoin over the counter (OTC) trading desk to institutional investors in the coming weeks, according to reports by Bloomberg.

Citing a person familiar with the matter, the source stated that Fidelity will buy and sell the world’s most popular digital asset for institutional customers within a few weeks. This comes after discovering an institutional appetite for digital assets is still growing. According to reports from a survey carried out by the firm, of the 441 institutional investors questioned, 72% of them revealed they prefer to buy investment products that hold digital assets, while 57% preferred to buy them directly.

Fidelity will reportedly join brokerage firm E*Trade Financial Corp. and Robinhood in offering cryptocurrency trading to clients. However, Fidelity will only offer its services to institutional customers. This was made clear in an email disclosed to Bloomberg from Fidelity spokeswoman Arlene Roberts, who said: “We currently have a select set of clients we’re supporting on our platform.”

Last November, Fidelity was reportedly considering the top five to seven cryptocurrencies, however, it appears it will be fluid with client needs and will adjust its services based on the requirements of its client base. But first, Bitcoin will be its top priority upon launch. Roberts said:

“We will continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors. Currently, our service offering is focused on Bitcoin.”

Earlier in March, Fidelity went live with a select few clients, stating clearly in a Tweet that it was after institutions and large funds:

 “We are live with a select group of eligible clients and will continue rolling out slowly. Our solutions are focused on the needs of hedge funds, family offices, pensions, endowments, other institutional investors.”

One of the most daunting challenges of the cryptocurrency markets is its allure for bad actors, and this to a great degree has limited the growth and adoption of emerging digital asset classes. Fidelity’s plan all along is to provide a top-notch custody solution that meets all regulatory standard and offer a safe portal for institutional investors to buy-in into the cryptocurrency markets.

 

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Fidelity Considers Digital Trading of Top 7 Cryptocurrencies

Fidelity Considers Digital Trading of Top 7 Cryptocurrencies

Fidelity Investments is reportedly looking into the feasibility of offering the top five to seven cryptocurrencies on its Digital Asset Services platform.

Extending beyond Bitcoin and Ether

Last month, the investment firm revealed its new Digital Asset Services arm alongside plans to offer Bitcoin and Ether trading services for institutional investors, also giving them a much-anticipated custody solution for these cryptocurrencies.

Tom Jessop, head of Fidelity Digital Assets, shared at the Block FS conference in New York on Thursday the company’s willingness to extend these services to other major cryptocurrencies.

“I think there is demand for the next four or five in rank of market cap order. So we will be looking at that,” he said in response to a question posed by Coindesk.

One of the potential issues he perceives is the question of which tokens will fall into the US Security and Exchange Commission’s definition of securities, as this will significantly impact the regulation surrounding their use. ”We are waiting for that space to develop,” he noted.

Jessop added there is not a huge call from institutional investors yet to venture into the lesser known cryptocurrencies on offer, so Fidelity will focus on the top seven or so, although other aditions will be considered when the demand is there.

Right now, he says Fidelity services over 13,000 institutional clients and their main interests are in the two leading cryptocurrencies, Bitcoin and Ether.

In August, the Bitcoin Tracker One Exchange Traded Note (ETN) became the first fully regulated financial instrument tied directly to Bitcoins, a service Fidelity offers its clients.

Given the relatively poor performance of the cryptocurrency market this year compared with 2017, many are counting on an influx of institutional investors using digital currency investment services such as that offered by Fidelity to boost prices.

 

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