Sarah Tran
Independent Analyst
- Fidelity has received a green light from a regulator in Canada to become the first Bitcoin trading and custody platform for institutions.
- The firm will now enable mutual funds, pension funds and portfolio managers to invest in cryptocurrencies directly.
- This move comes at a time when demand for digital asset investments among institutional investors has grown substantially.
Fidelity Clearing Canada will become the first Bitcoin trading and custody platform designed for institutions, following regulatory approval from the Investment Industry Regulatory Organization in the country. The move comes as the firm stated that the demand for investing in digital assets had grown considerably.
Fidelity’s crypto platform greenlit by Canadian regulator
Fidelity Clearing Canada, a subsidiary of mutual fund giant Fidelity Investments, has received regulatory approval to launch the first digital asset trading and custody solution for institutions in the country. Pension funds, portfolio managers and mutual funds could easily leverage the new platform to invest in crypto assets.
At the same time, Fidelity also filed to launch two Bitcoin funds in Canada, a BTC exchange-traded fund (ETF) and a mutual fund tied to the leading cryptocurrency. The prospective ETF would utilize the firm’s custodian services.
The world’s first Bitcoin ETF launched in February this year. Since then, crypto-based ETF products have been quickly gaining traction, as roughly 40 digital asset ETFs are awaiting approval in the United States.
According to Scott Mackenzie, the president of Fidelity Clearing Canada, the demand for investing in cryptocurrencies among institutional investors has been growing rapidly, and they have been searching for a regulated dealer platform for accessing the new asset class.
Institutional investors based in Canada, including mutual funds and ETFs, were previously required to access custodians based in the United States. Fidelity’s new service could allow investors to directly invest in Bitcoin.
According to the latest report by CoinShares, Bitcoin investment products among institutions continue to dominate inflows while the price of the bellwether cryptocurrency continues to rise.
The leading cryptocurrency witnessed inflows of $98 million last week, with total assets under management reaching a record high at $56 billion.
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