Unfazed by the rough seas, asset management giant Fidelity launches Fidelity Crypto

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Unfazed by the rough seas, asset management giant Fidelity launches Fidelity Crypto

Despite a series of closures in the market, stablecoin decoupling, and increasingly stringent regulations, asset management giant Fidelity remains undeterred. It has launched its Fidelity Crypto platform, allowing retail investors to trade Bitcoin and Ethereum through its existing stock trading app. Fidelity emphasizes that it does not charge any transaction fees and profits solely from the less than 1% spread in buying and selling prices.

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Risk Disclosure

As a giant in the asset management industry, Fidelity also provides risk warnings to investors regarding cryptocurrency on its website:

Cryptocurrencies are highly volatile and may become illiquid at any time, suitable for investors with high risk tolerance. Cryptocurrency investors may lose all the value of their investments.

Furthermore, custody and trading of Fidelity's cryptocurrencies are provided by Fidelity Digital Asset Services, LLC, a New York-chartered limited liability trust company. Brokerage services supporting securities transactions are provided by Fidelity Brokerage Services LLC, with custody services provided by National Financial Services LLC, each registered broker-dealer is a member of the New York Stock Exchange and SIPC.

It is also emphasized that cryptocurrencies are not protected by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).