The cryptocurrency sector is currently being engaged in numerous debates about its institutional acceptance and investment. Many historical firsts for digital currencies like Coinbase’s (COIN) direct listing in April are positive indications that digital currencies are becoming more popular. Two developing themes regarding cryptocurrencies have been brought to light by Fidelity Digital Assets President Tom Jessop, according to Jessop.
Over the next five years, a staggering 70% of respondents said they plan to have a digital asset allocation, Jessop told Yahoo Finance.
Jessop visited Yahoo Finance Live to talk about the dire situation of the cryptocurrency market, while at the same time, Fidelity is taking advantage of increasing crypto demand by accelerating recruiting for crypto positions. Fidelity Digital Assets is a separate business that is operating under the name Fidelity Investments’ division. They offer secure storage and trading services for the cryptocurrency asset class to institutional clients.
Hurdles for Crypto to Jump Over
When investors are hesitant to enter the crypto market, Jessop said that volatility is one of the major hurdles. Furthermore, a number of people are still trying to understand the basic principles of cryptocurrency, which gives them worth. Finally, cryptocurrency regulation remains among the first topics investors want to know about.
Gary Gensler, the SEC chairman, said that cryptocurrencies would move closer to mainstream use if the regulatory environment tightens. According to a former Goldman Sachs partner, the SEC is now investigating digital assets, including initial coin offerings (ICOs), trading venues, lending platforms, decentralized hedge funds, collateralized stablecoins, custody, and exchange-traded funds.
While acknowledging the inherent volatility of the cryptocurrency market, Jessop believes some level of “regulatory clarity” is required, and investor protection is something that is currently impeding the next stage of crypto development, resulting in assets classifying as a speculative, risky gamble rather than as a credible financial instrument.
Fidelity’s Crypto Hiring Binge
Fidelity Digital, the crypto subsidiary of Fidelity Investments, will be increasing its headcount as a result of its growing crypto business.
To cope with the increasing demand from wealthy crypto investors, the business is aiming to add almost 70% more employees. It is estimated that at least 100 people will be employed by the expanded workforce, and they will be located in Salt Lake City, Boston, and Dublin. According to Fidelity Digital CEO Tom Jessop, the firm plans to allow investors to trade not just Bitcoin, but also Ether, since “people are more interested in the Ether at the moment.”
The number of investment flows in ETH-based products has consistently exceeded those of Bitcoin since the beginning of the year. The business is also planning to hire many more people to expand its working hours in order to provide full-time services for the majority of the week.