Dec. 19, 2022
Amid all of the doom and gloom of crypto winter, one of the world’s largest financial services providers has officially started opening retail Bitcoin trading accounts.
Fidelity Investments has a long history with Bitcoin. They were mining it all the way back in 2014 and launched a spot Bitcoin ETF in Canada last year.
They’re smart enough to realize that over the long-term demand will continue to grow for Bitcoin and digital assets.
As these sectors grow so does retail and institutional demand for products. Many people are afraid to delve into cryptocurrencies and with the recent collapse of FTX, it’s easy to understand why. They would much rather gain exposure to the crypto sector using a trusted intermediary like an existing bank or financial firm.
That is why it’s such a big deal that Fidelity is offering retail crypto trading to its customers.
Now you can trade crypto using the same account with the same tools as your traditional investments. In fact, the platform even includes an integrated view of both your digital and traditional investments side by side.
Currently, the Fidelity crypto platform will only be offering Bitcoin and Ethereum, but many other cryptocurrencies are being evaluated.
Lawmakers are already raising objections to this announcement.
Fidelity is America’s largest provider of 401(k) savings accounts. As such, many politicians are making a fuss in an attempt to “protect” unscrupulous investors from losing all of their savings in speculative cryptocurrencies. How magnanimous of them to look out for the little guy!
Back in May, senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota signed a letter urging Fidelity to scrap its 401(k) Bitcoin plan. Another letter was recently sent, which included the signature of Senator Richard Durbin of Illinois, pleading with Fidelity to not offer these services:
“Once again, we strongly urge Fidelity Investments to reconsider its decision to allow 401(k) plan sponsors to expose plan participants to Bitcoin.”
Considering that Bitcoin is one of the smartest long-term investments a person can make, you have to wonder what motive these public servants have in attempting to block Fidelity’s service.
Could it be that the same ruling class that has enriched themselves through insider trading and lobbying funds are threatened by new forms of money and tech? With personal net worths often in the tens of millions of dollars, the existing system seems to be benefitting the average US senator quite well.
People aren’t as stupid or helpless as these politicians would like to think.
Crypto isn’t going away.
And after FTX’s collapse, more than ever the average person wants a trusted financial intermediary to handle their crypto transactions. Chris Tyrer, head of Fidelity Digital Assets, recently stated that people are fleeing “crypto native” platforms in a “flight to quality.”
This trend will only continue as investors look for safe and trusted onramps into the digital assets space.
Forward-thinking companies like Fidelity have been invested in crypto for years and see the future clearly. Our often corrupt and out-of-touch leaders are struggling to keep their eyes open at all.
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Editor, Daily Profit Cycle