Fidelity Says Wealth Managers Are Still Trying to Understand Bitcoin

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Tue, 03/23/2021 - 17:24
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Mike Durbin, head of Fidelity Institutional, recently told Reuters that wealth management firms were still trying to learn more about Bitcoin while the cryptocurrency is routinely hitting new all-time highs:      

They know what they are doing, and more importantly, their end investor base also knows what they are doing - but the vast majority are still in the education mode

He says that some work still has to be done before investors become comfortable with the technology.

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An alternative investment option

Durbin claims that Bitcoin and other cryptocurrencies are now viewed as alternative investment options:

I think that the growth rate of Bitcoin or digital assets will follow in that wake of broader alternative investments.  

As reported by U.Today, Fidelity Digital Assets, a cryptocurrency unit of the mutual fund giant, predicted that billions could flow into the leading cryptocurrency if it were to follow the path of emerging market equities.

Back in December, Fidelity CEO and early Bitcoin adopter Abigail Johnson took note of the company’s “incredibly successful” Bitcoin custody business.