The president of Fidelity Digital Assets, the crypto arm of Fidelity Investments, says that crypto is “its own unique asset class.” “We and others are deeply engaged with regulators to bring this asset class into the mainstream,” he revealed.
Fidelity sees long-term interest in crypto assets among institutional investors
Tom Jessop, president of Fidelity Digital Assets, shared his thoughts on the future of cryptocurrencies in an interview with Yahoo Finance on Thursday. He also discussed his firm’s efforts to engage with regulators to mainstream the asset class.
Fidelity is one of the largest traditional money managers. It has approximately 37 million individual investors, 83.4 million client accounts and $10.4 trillion in managed assets as of the end of March. The company founded Fidelity Digital Assets in 2018 to provide cryptocurrency products and services, including bitcoin, to institutional investors.
“What is clear are two things,” explained Jessop:
It is viewed as its own unique asset class with its own fundamental drivers, which differentiate it from other financial assets… and perhaps most importantly, what we are seeing is sustained purchase interest over the long term. Is.
The executive elaborated: “We see clients digging into those issues, really understanding not only the technology but the application of those assets in their portfolio.”
Jessop then made reference to a survey Fidelity Digital Assets conducted earlier this year, which found that nearly 70% of respondents plan to allocate digital assets over the next five years.
Noting “a cross section of institutions ranging from family offices and hedge funds all the way through to more traditional institutions”, the executive said:
So we continue to see slow and steady interest and progress toward mainstreaming this asset class.
Recently, Fidelity Digital Assets said it plans to increase its headcount by around 70% as demand for crypto services from institutional investors remains strong.
Regarding crypto assets legislation, the Fidelity executive described that “regulation and regulatory clarity are still an issue for many investors who want to ensure that there is a solid foundation of regulation, or at least a direction of travel.” important asset in space before.”
The US government has recently increased its efforts to regulate the crypto industry. US Securities and Exchange Commission[एसईसी]The chairman of the U.S. last week outlined his plans to regulate crypto assets and protect investors. The US Commodity Futures Trading Commission (CFTC) also clarified its jurisdiction over crypto assets. Meanwhile, the Biden administration has taken a greater interest in taxing stablecoins and crypto transactions.
“We think the focus is positive,” Jessop described the US crypto regulatory efforts, but noted that “there may be a few things to be said from time to time.” Boss of Fidelity Digital Assets detailed:
We are very engaged with and other regulators and continue to educate them on ways to mainstream this asset class and into a regulatory framework that captures the many principles that apply to other asset classes.
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