Aaryamann Shrivastava
FXStreet
- Fidelity Investment launched Fidelity Crypto to cater to retail investors, focusing on Bitcoin and Ethereum.
- Fidelity Crypto will not charge any commission fee, following in the footsteps of Robinhood and Binance.US.
- Ethereum’s price declined to $1,541 again after rising to $1,600 earlier this week.
Fidelity Investment is one of the largest financial services companies in the world, with over $9.9 trillion worth of assets under its management. The firm also has a footing in the crypto space through its Digital Assets arm and is now expanding on the same.
Fidelity brings zero crypto commission
According to a report from CNBC, Fidelity is set to launch a new service called Fidelity Crypto, which will bring commission-free crypto trading to retail investors.
The firm is known for its ETFs and index funds, which have a user base of retail and institutional clients. However, given the recent bearish market conditions, retail investors have taken a much more significant hit than institutions have.
Thus, by offering a crypto trading product free of commission, Fidelity plans on luring this cohort back into investing. Through Fidelity Crypto, investors can purchase and sell Bitcoin and Ethereum as well as make use of Fidelity’s custodial and trading services.
However, in place of bearing losses on the zero commission fee, Fidelity will be factoring in a 1% spread into each and every trade’s execution price. In the past, only Robinhood and Binance’s US arm have been known to make such offerings.
But as more fee-free services arise, sustaining a customer base will become tougher for trading services platforms charging a fee.
Could have an impact on Ethereum?
This would not be the first instance where Fidelity’s announcement could bear an impact on Ethereum’s price. In the past too, ETH has indicated signs of fluctuation following Fidelity’s announcement of the launch of institutional Ethereum capabilities as well as the sale of Fidelity Ethereum Index Fund, raising $5 million.
Currently, Ethereum is trading at $1,545 after retesting the resistance block ($1,641 to $1,761) earlier this week. On the 4-hour timeframe, the altcoin king highlighted multiple opportunities for short-term traders to cash profits following its 27% rise in October.
However, going forward, Ethereum could test the short-term critical support at $1,426 since recovery from a failed breach of the resistance block could take time.
But if the bullish winds blow again, ETH could once again attempt to breach the resistance block and reclaim $1,600.
ETHUSD 4-hour chart
In either case, short-term traders and scalpers can find profits if a close watch on the price action is maintained.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Why crypto may see a recovery right before or shortly after Bitcoin halving
Cryptocurrency market is bleeding, with Bitcoin price leading altcoins south in a broader market crash. The elevated risk levels have bulls sitting on their hands, but analysts from Santiment say this bleed may only be cauterized right before or shortly after the halving.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network (MANTA) price was not spared from the broader market crash instigated by a weakness in the Bitcoin (BTC) market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
Bitcoin is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving.
OMNI post nearly 50% loss after airdrop and exchange listing
Omni network (OMNI) lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.