Big Investment Firms Expanding in Crypto Sector! Signs of a Crypto Boom Ahead?

Photo by Choong Deng Xiang on Unsplash

Although the crypto winter continues, investment management business BlackRock and wealth management firm Fidelity Investments quietly extend into the realm of bitcoin, ether, and other crypto assets. Investors are gradually losing hope in a rebound as the crypto winter drags on.

Notwithstanding the devastating losses that have sliced the market and led BTC and ETH to drop significantly, Black and Fidelity have decided to make a play in the cryptocurrency field.

The fact that the cryptocurrency market is presently in the red is no longer breaking news. The prices of cryptocurrencies such as Bitcoin, Ethereum, Cardano, and XRP, amongst others, have experienced huge drops in value, which has led investors down a rabbit hole.

The fate of cryptocurrency investors is uncertain as the year progresses because many cryptocurrencies are trading at prices far lower than their all-time highs.

The digital currency known as bitcoin, which previously traded for more than $60,000, can now be purchased for just $28,000.

In point of fact, the first asset just made considerable profits, even though it previously traded for less than $20,000 in the market.

Despite the fact that some people think cryptocurrency is a fraud, others continue to have faith in its potential and hope that a positive turn of events is only around the corner.

Since 2023, Bitcoin’s price has increased by around 40% in the last 15 days as investors prepare for the possibility of an earthquake caused by the Federal Reserve. The price of Ethereum, on the other hand, is currently at $1,750.

bitcoin chart from tradingview.com (1.1)

 

BlackRock and Fidelity Are Stealthily Growing Their Presence in the Bitcoin and Ethereum Markets

If BlackRock and Fidelity were to show interest in Bitcoin and Ethereum, it might inspire greater confidence among traders.

The fact that these corporations, which collectively manage assets worth $14 trillion, are shifting their attention to cryptocurrencies during this unsettling moment may indicate that there is, in fact, something to search for.

In his annual letter to shareholders, the CEO of BlackRock, Larry Fink, provided a comprehensive discussion (1) on digital assets.

He said cryptocurrency had been in the news numerous times during the past year. Fink mentioned the collapse of FTX and noted that despite this, the space is still experiencing “quite fascinating advances.”

In addition to this, he discussed the prospects for development within the asset management industry. The chief executive officer has written:

“At BlackRock, we are continuing our investigation into the ecosystem of digital assets, particularly those sectors that are most relevant to our customers, such as permissioned blockchains and the tokenization of stocks and bonds.

Even if the market is maturing, there are obviously increased risks and a requirement for regulation in this sector. BlackRock is dedicated to achieving excellence in its operations, and the company intends to implement the same high standards and stringent controls on its digital assets as it does with the rest of its business.

After establishing an early waitlist back in November, Fidelity has now opened up access to their Fidelity Crypto service to a wider demographic of customers.

It was reported by certain sources that customers may trade Bitcoin & Ether without having to pay a commission.

The value of cryptocurrencies continues to spike, then plummet, and then surge again, demonstrating that they are extremely unstable.

With the market where it is right now, many observers are looking to the upcoming halving of Bitcoin’s supply as a possible starting point for the subsequent bull run. Alex Thorn, who is in charge of research at Galaxy, made the following observation:

“The next halving of bitcoin’s supply will take place in approximately one year. In the past, occurrences like these have been viewed as positive for digital assets.

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