Fidelity Digital Assets, the cryptocurrency arm of Fidelity Investments, has announced that it will be launching Ethereum (ETH) custody and trading services to its institutional clients before the end of this month.
Fidelity to Add ETH Custody and Trading Services
The crypto division of Fidelity has announced its intentions to introduce Ether (ETH) custody and trading services to its institutional clients. Fidelity is one of the world’s largest asset managers, with over $4.5 trillion in assets under management (AUM).
In an email from Fidelity Digital Assets to its clients, the crypto division will expand “Institutional Ethereum capabilities” for institutional investors. Beginning on October 28, 2022, Fidelity will support custody and trading for Ether.
According to the announcement, when ETH services are launched, users will be able to purchase, sell, and transfer ETH “using the same paradigm given for Bitcoin investments today.” Bruce Fenton shared a copy of the email on Twitter:
Growing Need for ETH Products
Fidelity’s latest news comes just weeks after the asset manager launched its new Ethereum Index Fund. According to the email announcement, the ETH custody service is in response to the need of institutional investors for ETH products.
Fidelity also notes that “many investors are looking at Ethereum through a new lens” since the successful launch of the Ethereum merge.
On the Flipside
- Fidelity’s 401K plan has received criticism from regulators due to the volatility of crypto.
Why You Should Care
The move is in response to the growing demand for ETH products and part of Fidelity’s plans to make crypto products easily available to institutional clients.
Find more details about the ETH index fund below:
Fidelity Investments Launches New Ethereum Index Fund With $5 Million Raised
Read about Fidelity’s plans for Bitcoin in:
Fidelity Investment to allow 34 million retail investors to buy Bitcoin (BTC)