The Managing Director of International Business at Fidelity, Christian Staub, recently said that the investment giant wants to remain in the crypto industry.
Moreover, Staub urged that the organization will not suggest one purchase or hold Bitcoin because of its volatility and nascent nature. He believes the lack of appropriate regulations in the crypto industry is a significant barrier blocking the company’s path.
While talking to an international media outlet, Staub noted that Fidelity would enable crypto access to all interested consumers. Additionally, he said that the investment giant would refrain from suggesting anyone or everyone to purchase Bitcoin.
The Managing Director believes that the crypto market will mirror more sophistication in the coming time compared to the ongoing scenario. He also thinks crypto is still in its early phase and needs more improvement by structuring a proper set of regulations.
Staub highlighted, ” It is impossible to predict which crypto token or coin will do well and beat the ongoing volatility and downtrend.” Later he emphasized that cryptocurrencies are a crucial matter for Fidelity, and the company will continue to lead the way as the sector reaches its full potential.
Significant Investments and Acquisitions of Fidelity
As per data from Crunchbase, Fidelity has made numerous investments in crypto and traditional technology. Some major companies that received investment from Fidelity are Coin Metrics, Fanatics, Chenjing Tech, Capital Market Gateway, ThoughtSpot, Osmoses and Zipline, with several others on the list.
Fidelity has 12 diversity investments in Compass, Outset Medical, Carbon, Spring, Cloudflare, Blue Apron, WeWork and 23andMe.
The investment bank has raised around $134.3 million in two different funding rounds. It raised $66.1 million in the second phase of the debt financing round and raised $68.2 million in the first simultaneously.
On March 3, 2023, Silvergate Capital faced various challenges, including its exposure to FTX, connection to Terra, and other factors, ultimately leading to its collapse.
The failure of a specific entity caused a chain reaction that led to the closure of both Silicon Valley Bank and Signature Bank. Authorities shut down these banks in an attempt to manage the banking crisis.
Fortunately, the FDIC compensated SVB and Signature’s investors and customers. It is important to note that Fidelity has no commercial or personal relations with the failure of the world’s third-largest cryptocurrency exchange, co-founded by Sam Bankman Fried.
Bitcoin is known as the leader of cryptocurrencies, and at press time, BTC was trading at $26,923.14 with a 24-hour trading volume of $7,870,241,982. In the quarterly trading session, Bitcoin prices jumped by over 10%.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/22/fidelity-will-not-urge-people-to-buy-bitcoin-says-christian/