LALA World CEO and Founder, Sankalp Shangari, shared his top 5 implications of the announcement . What the Fidelity News Means for Crypto ...
LALA World CEO and Founder, Sankalp Shangari, shared his top 5 implications of the announcement.
What the Fidelity News Means for Crypto
We’ve had time now to digest the news of Fidelity’s imminent foray into cryptocurrency trading launching an offshoot company called Fidelity Digital Assets. We’ve also analyzed the community response and what this means for the industry. But what can we discover by reading between the lines?
Fidelity Investments is the fourth largest asset manager in the world. It will now start storing and trading digital currency for its institutional clients, unlike Bitcoin futures which are cash-settled.
This is big news in any book, and the past two weeks have seen much dissection of the announcement and its consequences.
But what of the broader ramifications of this decision to enter the crypto market and Bitcoin price 00? And what does this say about the state of the industry in general? Shangari shared his analysis of the situation.
Abigail Johnson, Fidelity Investments CEO
Not taken lightly
Fidelity are big. Like $7.2 trillion dollars big. Like so many clients that there isn’t enough bitcoin in existence for them to each own one. This financial giant is entering the crypto market because of the changing demands of its customers. This isn’t a change which happened or a decision made overnight. It follows meticulous research and planning. This is the mainstream.
Serious investment
This decision paints Bitcoin and cryptocurrency as a serious investment. Until now it has been portrayed as a risky almost sub-culture. With custodian issues addressed by such a trusted name, crypto will attract a whole new client base.
Wall Street, meet crypto
2019 is set to be the year that Wall Street and crypto truly get acquainted. Fidelity are entering the market. Intercontinental is set to release its Bakkt futures product before the end of the year. And Goldman Sachs has invested $16 million in BitGo.
$15k by June 2019
Shangari thinks that the huge liquidity that the market should experience, will push bitcoin to a $15,000 price point by the middle of next year. That seems like a cautious, but sensible and sustainable prediction.
“Not only the market will witness huge liquidity we should also see Bitcoin touch the 15k dollar mark by June next year,” writes Shangari.
We’ve burst the dam
Expect a flood of similar announcements heading our way over the coming months. With this move by Fidelity, it will be harder for the other behemoths to continue refusing the requests of their clients. Jump in, the water’s lovely.
Do you agree with these five points? Share your thoughts below!
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