In the November monthly newsletter I mentioned the announcement by Fidelity Investments that they will soon be offering cryptocurrency investments to their 27 million customers.
One of the company’s first big customers will be Michael Novogratz and his Galaxy Digital hedge fund.
Why is this significant? Fidelity Investments is one of the world’s largest financial services providers, with $7.2 trillion in customer funds.
Fidelity brings the kind of credibility Wall Street firms need.
In late 2017 Fidelity partnered with Coinbase to enable clients to track a number of cryptocurrencies.
Now Fidelity is ready to directly integrate cryptocurrency assets into its platform. Despite this year’s bear market they are diving into the crypto world.
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Novogratz was a very successful Wall Street hedge fund manager.
He moved into Bitcoin in early 2015 and recently announced in a Bloomberg Television interview that he believes the first two quarters of 2019 will be “extremely positive for Bitcoin” because of firms such as Fidelity.
Fidelity will offer cryptocurrency custody service and Novogratz gave his stamp of approval to Fidelity’s trading and custodial services.
These two titans make a powerful statement to those who have been sitting on the sidelines — the time to get invested is now.
Firms such as Goldman Sachs, Citigroup, JPMorgan, TD Ameritrade, and Bakkt will also soon be exposing a lot more people to cryptocurrencies.
These firms, and others to follow, will simplify entry into the cryptocurrency market, doing away with the relatively difficult process of opening multiple exchanges and then trading coins between them in order to purchase many of the alt coins.
This week ICE Futures U.S., Inc. announced a launch date of December 12, 2018 for its new BTC futures contract.
Bakkt will begin offering physically-settled Bitcoin futures contracts, where each contract will settle in one Bitcoin. This could solve a large concern that the SEC has had about approving a Bitcoin ETF.
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One of the hold-ups for SEC approval of the first Bitcoin ETF is the fact that there hasn’t been a “sufficiently liquid” BTC futures market. In other words, the SEC has been concerned that a low-volume futures market can be easily manipulated and cause harm to traders.
That concern will likely be addressed with higher-volume trading of BTC futures trading through Bakkt.
Several important pieces are falling into place to help large investment houses enter the cryptocurrency market, following in the footsteps of Novogratz.
He believes a bottom is already in place for Bitcoin, but it’s possible he’s a little early (as was his call for a top in 2017).
Regardless of whether or not the cryptocurrency market has bottomed or will bottom after one more leg down, I think he’s correct in looking for a big rally in early 2019.
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Smarter cryptocurrency investmentsThe stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.