Canadian asset manager Fidelity announced its decision to permit Ethereum (ETH) trading beginning October 28 — in order to boost its institutional clients’ exposure to cryptocurrency,
Fidelity’s institutional clients will be entitled to purchase, trade, and transfer ether starting this month, according to the company representative. Given the asset manager’s dominant market position, the recent move could provide a significant boost to institutional adoption.
Fidelity recently introduced a new ethereum index fund for accredited investors as part of the company’s attempts to bring more crypto-related investing alternatives to its consumers. The product’s release followed the company’s launching of a variety of crypto-related items.
The firm explained that “Fidelity Advantage Ether ETF offers secure storage of ether, managed with our in-house services. The ETF allows you to gain exposure to ether and aims to diversify your portfolio with one of the world’s largest cryptocurrencies. Plus, it’s RRSP and TFSA eligible.”
An April 2022 study conducted by the New York-based Nasdaq stock exchange reported that 72% of American financial advisors would be more willing to invest their clients’ money in cryptocurrency if a spot crypto ETF was readily available in the United States.
The poll, which gathered responses from 500 financial advisors, stated that 86% of those who are already investing in cryptocurrency plan to increase their allocations over the next year. Additionally , the survey found that 0% of respondents intended to reduce them.
The findings of the April poll underlined the professionals’ unwavering conviction in crypto’s ability to deliver long-term returns. The respondents who were investing in crypto at the time or planned to do so stated that the ideal crypto allocation would be 6% of a client’s total investment portfolio.
