Fidelity Investments’ Director of Global Macro sees bitcoin as “exponential gold” and “an aspiring player on the store of value team.” According to his analysis, bitcoin’s price is “driven primarily by the growth in its network, which is in turn driven by bitcoin’s unique scarcity feature, as well as the monetary and fiscal policy cycle, […]
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US Spot Bitcoin ETFs Record Second-Highest Inflows at $886.6M, Led by Fidelity’s FBTC
On June 4, 2024, U.S. spot bitcoin exchange-traded funds (ETFs) saw their second-largest day of inflows since their launch in January. The inflows totaled approximately 6.6 million, with Fidelity’s FBTC leading, capturing 9 million on Tuesday. U.S. Spot Bitcoin ETFs Secure Over Billion in BTC Holdings Spot bitcoin ETFs have been experiencing daily inflows […]
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Blackrock’s IBIT and Fidelity’s FBTC Drive $28M Inflows for US Bitcoin ETFs
On Wednesday, U.S. spot bitcoin exchange-traded funds (ETFs) continued their streak of positive gains, collecting .3 million in inflows. This marks the 12th consecutive day of positive inflows for U.S. bitcoin ETFs. Blackrock’s IBIT Tops Inflows as U.S. Bitcoin ETFs Maintain Positive Streak Blackrock’s Ishares bitcoin trust (IBIT) led on May 29, with .5 million […]
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Fidelity’s FBTC Gains Ground, Absorbing Over 1,000 BTC Amid Wednesday’s $123M Inflow
U.S. spot bitcoin exchange-traded funds (ETFs) garnered 3.7 million in positive inflows during Wednesday’s trading. Grayscale’s Bitcoin Trust (GBTC) experienced a decline in its bitcoin holdings, decreasing from 318,451.70 to 316,193.43 bitcoins. ETF Analyst Notes Historical Inflow Streak in 2 Bitcoin ETFs, Eyeing Record On Wednesday, U.S. spot bitcoin ETFs reversed a two-day trend of […]
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Financial Giant Fidelity’s Director Sees Bitcoin as ‘Exponential Gold’
Financial services giant Fidelity’s director of global macro says bitcoin is “exponential gold.” He explained that gold is “too deflationary and clunky to be used as a medium of exchange,” noting that “investors own it primarily as a store of value — and one of the many reasons bitcoin is often compared to gold.”
Fidelity’s Director Thinks of Bitcoin as ‘Exponential Gold’
Jurrien Timmer, director of global macro at financial services giant Fidelity, shared his bitcoin outlook in a series of posts on social media platform X this week. He wrote on Wednesday:
In my view, bitcoin is a commodity currency that aspires to be a store of value and a hedge against monetary debasement. I think of it as exponential gold.
“Historically, during structural regimes in which inflation runs hot, real rates are negative, and/or money supply growth is excessive, gold tends to shine and gain market share relative to GDP. Notable examples: the 1970s and 2000s,” Timmer detailed.
While noting that “Gold is money,” he argued:
It’s too deflationary and clunky to be used as a medium of exchange. Hence, investors own it primarily as a store of value – and one of the many reasons bitcoin is often compared to gold.
On Friday, the Fidelity director further discussed bitcoin on X. “Based on monthly data as of September, bitcoin still has a positive correlation to equities, but less so than many other assets,” he said. “Where might bitcoin sit in a 60/40 portfolio? In my view, it should sit squarely in the alts bucket. However, while bitcoin’s correlation is becoming less positive against the S&P 500, it is not negatively correlated against much else.”
Timmer additionally stated that BTC is “negatively correlated to the U.S. dollar and T-bills.” He continued: “Surprisingly, it is uncorrelated against gold. That’s bad because it puts a question mark behind the thesis that bitcoin is playing for the same team as gold. But it’s positive because we want as many of the alts to be uncorrelated against both the 60/40 index and against other alts.” The executive concluded: “If bitcoin and gold play on the same team but in different games, then that’s not too bad.”
What do you think about Fidelity’s director of global macro’s statements about bitcoin and gold? Let us know in the comments section below.
Fidelitys Crypto Branch Files for a New York Trust License Report
n Fidelitys crypto arm Fidelity Digital Assets Services has reportedly filed with the NYDFS for a New York trust licensen
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Crypto Tidbits: Fidelity’s Bitcoin Offering Live, Starbucks May Accept Cryptocurrency
Prospects for the crypto space remain bright. Over the past week, Wall Street giant Fidelity Investments has soft-launched its digital asset branch, Starbucks is purportedly looking to accept Bitcoin, and Twitter CEO Jack Dorsey has only doubled-down on his support for BTC and its respective ecosystem.
Crypto Tidbits:
- Fidelity’s Crypto Branch Live, Serving Select List Of Clients: At long last, it has been officially confirmed that Fidelity Digital Asset Services (FDAS), the first fully-fledged crypto platform backed by Wall Street, has gone live. In a number of interviews with cryptocurrency outlets this week, Tom Jessop, a former Goldman Sachs executive turned head of FDAS, explained that his brainchild’s offerings are live for a select list of “eligible clients.” Jessop adds that at the moment, the platform only supports Bitcoin, and will be staving off its verdict on Ethereum due to impending blockchain upgrades. Regardless, many were enthused by this offering, claiming that this could be the match that could revive the once-bustling cryptocurrency market.
- BlockFi Launches 6.2% Interest Account For Bitcoin And Ethereum: Popular crypto startup BlockFi has revealed its latest offering, giving its clients a way to stack satoshis and gwei amid a bear market. As we reported this week, the New York-headquartered company, which raised .5 million from investors like Novogratz’s Galaxy Digital last July, will allow users to deposit a minimum of one BTC or 25 ETH to get a 6.2% APR, denominated in cryptocurrency. The Winklevoss Twins’ Gemini Trust will be backing the novel offering through custody, which has full insurance coverage. While the “interest account” has a solid premise, some were fearful that this could push the crypto market lower, with skeptics of BlockFi drawing attention to the rehypothecation of cryptocurrency.
- Starbucks May Launch Support For Bitcoin Through Bakkt: According to an exclusive report from The Block, which cited sources familiar with dealings, Starbucks may be launching support for digital asset payments in the coming months. The Block founder Mike Dudas took to Twitter to divulge the news, remarking that Starbucks received a significant stake in Bakkt, a crypto startup headed by the Intercontinental Exchange, in exchange for “commitment to allow Bitcoin payments in store in 2019.” Bakkt’s software will purportedly facilitate these payments, which will be instantly converted from cryptocurrencies into fiat currencies.
- Jack Dorsey Still Enamored With Bitcoin: Just weeks after he revealed that he would look into integrating the Lightning Network into Square, Twitter CEO Jack Dorsey has revealed that he has purchased ,000 in BTC in the past week alone. Rumor on the block(chain) claims that Dorsey is accumulating this much, if not more, each and every week. In a tweet, he went on to laud Trezor, revealing that he had purchased a hardware device from the cryptocurrency firm through Cash App.
- QuadrigaCX’s Bitcoin Wallets Have Been Empty Since Early-2018: Big Four auditor Ernst & Young has confirmed that addresses tied to the embattled QuadrigaCX have been left out to dry for months. The firm revealed that the exchange’s Bitcoin wallets have been empty since 2018. Not just late-2018, but in April 2018. The auditor claims to that contrary to the affidavit filed by Jennifer Robertson, Cotten’s widow, there are not dozens of millions worth of BTC in the QuadrigaCX-linked addresses, but “nil.” Ernst & Young’s report comes just days after James Edwards, an independent blockchain researcher, noted that 649,708 Ether, valued at over 0 million at their transfer date, left the exchange’s Ethereum wallets for user accounts on Bitfinex and Poloniex in December 2018, just days before founder Gerald Cotten died.
- Crypto Startup Circle Looking To Secure 0 Million: According to an exclusive report from business media resource The Information, which cited a person familiar with exclusive information, Circle is looking to get a nine-figure cheque for some of its equity and debt. Insiders told the outlet that the world-renowned cryptocurrency startup, backed by Wall Street powerhouse Goldman Sachs, is looking for 0 million in this latest round, which remains unannounced to the public audience. While this is unconfirmed hearsay, analysts claim that more likely than not, this deal is likely in the works. In an interview, technology entrepreneur Jeremy Allaire of the company noted that his company is seeking alternative capital raising structures.
- France May Ban Privacy-Centric Cryptocurrencies: Forbes reports that the Finance Committee of France’s National Assembly has overtly claimed that it would be appropriate to ban all digital assets focused on providing greater anonymity to its users, including Monero and ZCash. The regulator cites the fact that this subset of cryptocurrencies can pose a heightened risk of money laundering, among other crimes.
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Fidelitys Bitcoin Custody Service Could Launch This March
n nn nn Fidelity Investments, one of the worlds largest asset managers, is breaking into bitcoin custody.According to a recent report from Bloomberg, three people with knowledge on the matter from firms in contact with Fidelity have said that the company is tentatively planning to launch a custody service for bitcoin in March.This move would fall in line with the companys recent pushes toward the crypto space. Last October, Fidelity announced the creation of a pla
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Will Fidelity’s New Institutional Crypto Products Boost Markets?
A major financial institution getting involved in cryptocurrencies is usually big news. With the prolonged US government shutdown hampering a number of long awaited crypto funds, large investment companies are seeking alternative ways to enter crypto markets.
Fidelity Crypto Custody Coming
According to Bloomberg Fidelity Investments is planning to launch its Bitcoin custody services in March. The mutual fund giant is hoping to ease the fears that institutional investors may have about the highly volatile and somewhat technical world of crypto trading. The delayed Bakkt and VanEk crypto funds have put the brakes on any hopes investors may have had about entering the space as early as February.
The firm initially announced an array of crypto based products for institutional investors back in October. Citing ‘three people familiar with the matter’ the report added that Bitcoin storage is likely to be the first offering shortly followed by a custody service. An official company statement yesterday added;
“We are currently serving a select set of eligible clients as we continue to build our initial solutions. Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”
The need for crypto custody arises from the risks involved of leaving investments with crypto exchanges. There were a number of high profile hacks during 2018, with Coincheck being the largest at over 0 million. These security breaches do not instill confidence in institutional investors who need to be safe in the knowledge that their crypto investments are securely stashed with a reputable finance firm. Fidelity, one of the world’s largest providers of retirement savings and mutual funds, aims to fill that niche by offering such a service.
It is not the first foray into crypto for Fidelity as CEO Abigail Johnson has been a Bitcoin proponent for several years. The firm’s Fidelity Digital Asset division aims to attract Wall Street whales to crypto markets by offering a safe haven for their assets via cryptographic key management. The company already has a huge reach working with over 13,000 financial institutions.
Fidelity could provide the first serious on-ramp for high rollers with the launch of its services in March. With markets on the floor, now would be a much more lucrative time to get in than in December 2017 when the first two Bitcoin hedge funds were launched by CME and CBOE. Those looking to invest now will be longing for such a product and Fidelity could be the catalyst to start markets moving upwards again.
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Fidelitys Man Can Tom Jessop Bridge Crypto and Wall Street for Good
CoinDesk profiles Fidelity’s Tom Jessop, who is leading the firm’s effort to link the worlds of digital assets and Wall Street.
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