Fidelity to become Canada's first institutional custodian of Bitcoin (BTC)

Thu 18 Nov 2021 ▪ 10h57 ▪ 3 min read — by Rudy Bauer

Fidelity Clearing Canada will be the first platform in Canada to provide Bitcoin storage and trading services to institutions. The company has already received regulatory approval. The crypto exchange decided to take this step after demand for investments in digital assets began to skyrocket.

New opportunities for institutions

According to FXStreet, Fidelity Clearing Canada, a subsidiary of mutual fund giant Fidelity Investments, has received an approval from Canadian regulators to launch a platform that will allow institutions to trade or store cryptocurrency. This provides an opportunity for organisations and fund representatives to engage in crypto investments. Fidelity Clearing Canada will be the first company to provide such services in the country.

Fidelity recently applied to create two Bitcoin products in Canada, including a BTC exchange-traded fund (ETF) and a mutual fund tied to the first cryptocurrency. The firm’s custodian services will be used by the prospective ETF.

Direct access to Bitcoin and other cryptocurrencies

In February this year, the first Bitcoin futures ETF was launched. Such products are now becoming increasingly popular around the world, being one of the easiest ways of gaining exposure to the crypto market. In the US, some 40 digital asset ETFs are awaiting regulatory approval.

According to Fidelity Clearing Canada president Scott McKenzie, demand for cryptocurrency among institutional investors is rapidly gaining momentum. He said institutions have long been looking for a platform that can provide them with access to the new asset class.

Canadian institutional investors have been forced to partner with US cryptocurrency custody companies. Thanks to Fidelity, they will now be able to trade BTC and other digital assets directly.

Bitcoin-related products among institutional investors continue to dominate inflows, according to the latest CoinShares report, while the price of BTC continues to grow. Last week, the biggest cryptocurrency saw inflows of $98 million (~£73 million), bringing total assets under control to a new high of $56 billion (~£41 billion).

Canada is setting a great example to other countries of how to be responsive to the needs of citizens. Hopefully, the list of such services will continue to grow and become available to the general public.

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Rudy Bauer

Photographe, Vidéaste, webdesigner et enfin rédacteur pour CoinTribune: l'image, le digital et la blockchain sont mon dada.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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