Fidelity Eyes Retail Investors With New Crypto Product
The investment giant is keen to attract retail investors to its platform by introducing a new investment tool that offers commission-free trading.
The new investment tool will allow investors to perform commission-free trading with BTC and ETH. In addition, investors can access traditional stocks alongside cryptocurrencies in a single app. Meanwhile, Fidelity revealed that it is considering adding other crypto tokens.
Users will enjoy zero commission; however, the platform noted that there is a 1% spread that it will include for each transaction.
As a retail-centered investment product, the asset is backed by Fidelity’s Digital Asset Unit, an institutional-driven department. Moreover, the platform is yet to state when it will approve trading for early adopters.
The latest development comes on the heels of the remarks by Michael Durbin, President of Fidelity Institutional. Durbin noted ample opportunities for digital assets in consumer investment portfolios.
Fidelity is among the first investment companies to embrace cryptocurrency. The firm is in Canada and offers Bitcoin exchange-traded funds (ETFs). In addition, it also provides several crypto-based ETFs in the United States with Bitcoin investment tools in the 401(k) retirement packages.
Crypto Role In Consumer Portfolio
Speaking at a securities industries meeting in New York last month, the President of Fidelity Institutional noted a growing space for cryptocurrency in the consumer portfolio. Michael Durbin further explained that crypto assets have a huge role in consumer portfolios, depending on the regulatory environment.
Durbin added that consumers’ interest in crypto tokens is soaring, and there is a need to accommodate the growing number of people demanding such services.
However, the president stated that interested individuals need to be conservative in their approach due to the risks associated with crypto investments.
Durbin further revealed that Fidelity Institutional has always advised users to be careful when giving out risk budgets when making decisions to invest in digital assets.
According to him, investors must set aside a significant amount in their risk budgets to defend themselves when needed. Doing so will help accelerate the work of Fidelity Institutional to provide tailored investment services to the market.
Retail Crypto Investment Fueling Adoption
Whatever its type, investment is a long-term activity chosen by individuals to build wealth or diversify their portfolio. Cryptocurrency investment is the newest wealth-generating tool on the block that most people leverage to increase their earnings.
Despite the volatile crypto market, retail investment appears to fuel the appetite for wealth generation. As a result, the crypto market has continued to be the target of retail investors looking to earn profits.
Interestingly, the crypto market bull run of 2021 is primarily due to the activities of retail traders. The COVID-19 pandemic has caused a shift in the direction of investment drives as most traditional assets have lost their value, giving way to mass crypto adoption.
With many countries already accepting crypto assets as an alternative means of payment, it will be interesting to see how digital tokens can overtake fiat in the coming years.
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