Fidelity Digital to Expand Staff by 70% Amid Crypto Boom
The asset management unit is looking to increase its workforce due to growing demand for crypto assets.
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The president of Fidelity Digital Assets said that many clients are particularly interested in Ethereum.
Fidelity Digital Assets Set for Growth
Fidelity Digital Assets is building out its operation.
The asset management unit, which forms part of institutional-focussed firm Fidelity Investments Inc., is planning to grow its team by 70% due to high interest in the crypto space among clients.
Tom Jessop, president of Fidelity Digital Assets, told Bloomberg that the firm intends to add 100 staff that will work on developing products and diversify the firm’s offerings beyond Bitcoin. He said:
“We’ve seen more interest in Ether, so we want to be ahead of that demand.”
Jessop also commented that 2020 was a “breakout year” for the crypto space, which saw an acceleration due to the Coronavirus pandemic. Many investors turned to Bitcoin as an inflationary hedge amid unprecedented money printing, helping the asset hit highs of $64,000 in April 2021. Ethereum also soared along with many other tokens before a market-wide crash in May.
Fidelity Digital Assets currently only offers custodial services for Bitcoin, but the growing interest in Ethereum could mean that changes soon. Jessop added that the firm plans to offer trading on a more frequent basis so that it’s “full-time for most of the week.”
Jessop added that demand for crypto has risen among institutional investors, with Bitcoin acting as a gateway to other assets. “It’s now really opening up a window on what else is going on in the space,” he said.
Fidelity has taken clear steps to double down on the crypto boom throughout this year. In March, it filed an application for a Bitcoin ETF. It’s currently pending approval with the SEC.
Disclosure: At the time of writing, the author of this feature owned ETH, ETH2X-FLI, and several other cryptocurrencies.
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