Fidelity Digital Partnership Brings Crypto to Wealthy Asian Investors

In a statement provided to Bloomberg, Stack Funds revealed a burgeoning demand for crypto investment services from HNIs and family offices in Asia. The company hopes to leverage Fidelity’s reputation and demonstrated capacity in the secure digital asset custody space to satisfy the growing demand niche and further popularize cryptocurrency investments in the region.

🔥 Fidelity Digital Asset Services partners with Stack Funds to facilitate the growing interest in cryptocurrencies among Asian investors.https://t.co/CRYb2mERp3 #crypto #blockchain #btc #xrp

— The Cryptic Poet (@1CrypticPoet) October 29, 2020

Fidelity-Stack Partnership Offers Symbiosis

According to Stack co-founder Michael Collett, the partnership is expected to appeal to investors due to the reduced security risk factor of Fidelity’s presence and its own financial controls and investor protections. These protections include monthly asset audits, comprehensive insurance coverage, and weekly contributions and redemptions. Fidelity Investments sees the partnership as part of a wider strategic move into the digital assets space. In August, the firm revealed that it was launching a Bitcoin-only fund to be made available to family offices, registered investment advisers, and other institutions, subject to a minimum initial investment of $100,000. Speaking to Bloomberg about the partnership, Fidelity Digital Assets Europe head, Christopher Tyrer said;

“There is a critical need for platforms which have a deep understanding of what local and regional investors are looking for. [This] has historically been lacking in the digital asset space.”

Fidelity’s services and reputation in traditional markets is a welcomed addition to our current and upcoming suite of products for institutional investors. https://t.co/SMOrzoZhHK

— Stack Funds (@Stack_AM) October 29, 2020

Crypto Adoption on the Rise

Following a topsy-turvy year that included a Bitcoin price dip to $3,800 in March, cryptocurrency investments and consumer adoption numbers are in some ways already exceeding levels seen during the 2017 bull run. On Oct 4, BeInCrypto reported that MicroStrategy CEO Michael Saylor moved $425 million of his company’s cash holdings into Bitcoin, describing it as a “harder asset than gold.” Speaking to Bloomberg, Collett said:

“This year has been tough as far as getting people into Bitcoin because it didn’t cover itself with glory in the market downturn. Since the dark-dark days of March we’ve had inquiries pick up again.”

Speaking on Oct 27, on-chain analyst Willy Woo revealed that while the crypto world waits for Bitcoin to return to its 2017 highs, its Network Value Transaction Ratio (NVT) price is already at an all-time high. This he said, will inevitably be followed by a price rise. Several notable financial institutions including PayPal have made market-moving plays to get into the crypto space.