Fidelity Launches First Institutional Bitcoin Solution After Receiving Canadian Approval
DailyCoin
Published Nov 20, 2021 12:00AM ET
Fidelity Launches First Institutional Bitcoin Solution After Receiving Canadian Approval
- Fidelity is the first solution for the custody and trading of bitcoin in the country, and is already available to institutional investors.
- Due to the high demand for services from investors, Fidelity has already introduced other products for Bitcoin mutual funds and ETFs as well.
- In the future the company hopes to launch products for retail customers.
Canada’s financial regulator has approved the launch of the first institutional digital asset service in the country by Fidelity Clearing Canada (FCC). As a result, Fidelity has become the first Bitcoin trading and custody platform specifically designed for institutions.
Having received authorization from the Investment Industry Regulatory Organization of Canada (IIROC), the new service will be fully focused on cryptocurrency operations.
The approval came after the company reported considerable growth in the demand for digital assets from Canadian investors.
The Canadian government had laid the groundwork for this move months prior when it authorized the operations of a set of Bitcoin ETFs. The country has been receptive to the crypto industry since migrating bitcoin miners from China and other countries chose Canada as their new hub.
Fidelity Investments said in a statement that the country will have its first IIROC. For now, the new digital asset custody and trading service product will only be available to institutional investors.
Subsequently, the company hopes to be able to expand its services to retail clients, once it is authorized to operate bitcoin-oriented mutual funds, as well as negotiable funds on the Canadian stock exchange.
“Leveraging this new platform, Fidelity Investments Canada ULC presented preliminary prospects for the Fidelity Advantage Bitcoin ETF and the Fidelity Advantage Bitcoin ETF Fund,” the statement said.
The launch of FCC comes at a time when the cryptocurrency market is growing incessantly around the globe, and Canadian institutions are very interested in acquiring these types of assets, the company highlighted.
According to the president of Fidelity, Scott MacKenzie, Canadian institutional investors “have been looking for a regulated dealer platform to access this asset class” for some time, which facilitated the launch of the new project.
MacKenzie added that:
"Fidelity Clearing Canada is pleased to offer our new solution, leveraging Fidelity's global experience and deep knowledge of digital assets for leading Canadian institutional investors." Those interested in using FCC’s cryptocurrency custody and trading services can now do so as the solution has already been activated for portfolio managers and distributors, mutual funds, ETFs, and other qualified institutional investors, according to the operator.
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On The Flipside
- A study conducted by the firm recently determined that around 70% of Canadian institutional investors are considering acquiring digital assets in the coming months.
Why You Should Care?
- The platform has stood out as one of the leaders of the adoption of cryptocurrencies since 2020, not only in Canada, but in the U.S. and Europe as well, where it has launched various investment products.
- Fidelity Clearing Canada, is a subsidiary company of Fidelity Investments, the American mutual funds giant.
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