Fidelity Investments, one of the largest brokerages in the world, has launched a commission-free crypto trading product for retail investors called Fidelity Crypto. The service allows investors to buy and sell bitcoin and ether and use custodial and trading services provided by its subsidiary Fidelity Digital Assets. The platform was previously only available to institutions and some waitlisted customers, but it has now been made available to all retail traders. Fidelity’s timing could be beneficial, as high and persistent inflation has restored some investor confidence in cryptocurrencies. The launch could fill the vacuum created by the failure of crypto-friendly banks like Signature. Fidelity’s trading platform also allows users to trade crypto for fiat money.
Fidelity Crypto’s Offerings
Fidelity is offering customers what it describes as “commission-free” crypto trading. However, the company says it will take a spread of up to 1% on crypto trades. Fidelity Crypto’s offerings are on the low end among cryptocurrency platforms reviewed by NerdWallet. Granted, Bitcoin and Ethereum are the two most valuable cryptocurrencies, which means they are widely used and relatively well-established in this emerging sector. Though Fidelity’s first stab at a consumer crypto product isn’t the most robust on the market, the firm’s brand name and track record could attract investors who are new to the crypto space.
Fidelity’s Expansion into Crypto
Fidelity Investments has been integrating Bitcoin into their products and supporting other crypto-based initiatives, including an exchange platform. In addition, Fidelity has been easing access to Bitcoin-based retirement plans for U.S. citizens and contributing to adopting the new asset class. For their efforts, the company has been attacked by key members of the U.S. Congress, including Senator Elizabeth Warren, who classified these products as too risky for the American public. However, Fidelity’s expansion into crypto could benefit from recent bank turmoil and the closure of cryptocurrency-friendly banks that bridged the divide between digital and traditional finance.
Fidelity’s Crypto Platform
Fidelity’s crypto platform is designed to fill the void created by the closure of crypto-friendly banks like Signature. The separation of investors from the passwords known as private keys that allow direct owners to take custody of their cryptocurrencies combined with the inability to transfer holdings means that Fidelity retains custody of the assets. The Fidelity service provides both the credibility that crypto has needed and the opportunity for investors, most of whom rely on their financial advisors for investment advice.
Conclusion
Fidelity Investments has launched a commission-free crypto trading product for retail investors called Fidelity Crypto. The platform allows investors to buy and sell bitcoin and ether and use custodial and trading services provided by its subsidiary Fidelity Digital Assets. Fidelity’s expansion into crypto could benefit from recent bank turmoil and the closure of cryptocurrency-friendly banks that bridged the divide between digital and traditional finance. Though Fidelity’s first stab at a consumer crypto product isn’t the most robust on the market, the firm’s brand name and track record could attract investors who are new to the crypto space.
