Friday, January 27, 2023

Investment Giant Fidelity Lets Clients View Cryptocurrency Portfolios

Investment Giant Fidelity Lets Clients View Cryptocurrency Portfolios

International investment fund manager Fidelity is partnering with Coinbase to allow clients to view their cryptocurrency balances alongside their portfolios. It’s another step into the digital asset wading pool for the company, after earlier allowing bitcoin donations to its charitable fund.

Also read: AMD’s Upcoming VEGA GPU Could Prolong Ethereum Mining Craze

Fidelity crypto balancesFidelity Investments has over $2 trillion USD in assets under management, and offers financial services worldwide.

To be clear, the fund manager isn’t letting clients actually hold cryptocurrencies in their portfolios… yet. It’s simply inviting Coinbase account holders to integrate their accounts to view their BTC, LTC and ETC balances in their Fidelity Portfolio Summary View.

However, the move signals Fidelity is acknowledging its clients’ curiosity and actual involvement with digital assets. It may in turn prompt some traditional investors to look twice at this new asset class.

Fidelity Clients Ask for Digital Asset Portfolios

The company announced the news on Twitter, prompting a positive response. Some clients asked if it would consider allowing them to directly invest in cryptocurrencies.

Its responses suggested a willingness to do that in the future, although it isn’t possible right now. The SEC is taking a very cautious approach to bitcoin and similar assets, and has not yet permitted ETFs or other investment funds.

A statement on Fidelity’s website reads:

Bitcoin and other blockchain technologies are emerging from their infancy, but mass adoption is still many years away. Just as many other technologies have done in the past, Bitcoin and blockchain could transform how we manage our finances.

The Coinbase partnership comes via research unit Fidelity Labs, which has conducted previous Bitcoin experiments. Its own employees are using bitcoin in places like the staff cafeteria.

The firm’s philanthropic fund, Fidelity Charitable, has allowed bitcoin donations for the past year. It also points out the tax benefits of donating with BTC — since the IRS defines bitcoin as “property”, donations are counted as “in kind”.

It reportedly received $9 million USD worth of bitcoin donations in the first half of 2017 — $2 million more than in all of 2016.

Fidelity also produced a short video detailing how clients can view their Coinbase balances:

How long before investment companies will offer direct investment in digital currencies? Let’s hear your thoughts.

Images via Fidelity

Bitsonline Email Newsletter