$2.46 Trillion Asset Manager Fidelity Packed with ‘Hundreds’ of Rabid Bitcoin Fans

By CCN.com: According to Ari Paul, a prominent investor in the cryptocurrency industry and the co-founder of BlockTower Capital, Fidelity has hundreds of passionate bitcoin advocates at the executive level.

Fidelity, one of the largest asset managers in the world with over $2.46 trillion in assets under management, has made a targeted entry into the cryptocurrency sector and is set to launch a crypto custodian service in the near-term.

Kate Rooney


More from an off-stage interview with @Fidelity @DigitalAssets Tom Jessop at . Company is live, sees institutional interest despite bear market. “They are as encouraged now as they were when prices were higher.” https://cnb.cx/2SOGWUN 

Fidelity’s new cryptocurrency company is up and running despite a bear market for digital coins

Fidelity Digital Assets, a new company created by the investing giant last year, is already working with wealthy families and hedge funds on cryptocurrency trading and custody.


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In January, the company said in an official announcement:

“We are currently serving a select set of eligible clients as we continue to build our initial solutions. Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”

The involvement of major financial institutions in the likes of Fidelity, ICE, and Nasdaq in the cryptocurrency market amidst a 15-month bear market suggests that the interest in the asset class from investors in the traditional financial market still remains relatively high.


Since mid-2017, executives at Fidelity have expressed their willingness to study and learn about cryptocurrencies and their underlying technologies.

In July 2017, Hadley Stern at Fidelity told Fortune that the company had been mining bitcoinand ethereum to understand the mechanisms behind the network, consensus, and difficulty levels.

Throughout the past year and a half, Fidelity has continued to work towards understanding the asset class with the intent of providing an infrastructure to support investors in the crypto market.

On Wednesday, Paul said that the enthusiasm towards crypto runs throughout the company, at every level of seniority of the firm, sparking optimism regarding the rate of institutionalization of the crypto market.

Paul stated:

“Fidelity’s cryptocurrency culture is bonkers. Literally hundreds of passionate advocates at every level of seniority at the firm. They have more people working on crypto than the 5 biggest crypto funds combined.”

“Their approach to custody from a security perspective is very impressive (at least from my relatively quick look.) Not many groups actively mitigating things like HSM supply chain risk.”

At this phase of the cryptocurrency market wherein some investors could doubt the long-term survivability of the asset class, the demonstration of confidence by companies in the scale of Fidelity and ICE is crucial in serving as evidence that the asset class itself is not a fad.

As Jeff Sprecher, the chairman of the New York Stock Exchange said in November of last year, cryptocurrencies will survive and bitcoin, in particular, has shown that it can endure long-lasting bear markets in the past 10 years.

“Somehow bitcoin has lived in a swamp and survived. There are thousands of other tokens that you could argue are better but yet bitcoin continues to survive, thrive and attract attention,” Sprecher said.


Previous reports have suggested that Fidelity is slowing down the process of offering crypto custodial services to the public and is not in a hurry to do so.

Speaking to The Block in March, Fidelity Digital Asset head Tom Jessop said that 20 percent of institutions surveyed by Fidelity said they are planning to expand their investments in the crypto market.

“We just completed a survey of about 450 institutions, so everything from family offices to registered investment advisors to hedge funds. It’s interesting, I think about 20% indicated that they currently allocate to digital assets with an intention to grow that,” Jessop said.

Financial institutions, especially multi-billion dollar corporations, do not aggressively move into unregulated markets unless they see significant demand or first mover advantage.

The efforts of Fidelity and other major firms indicate that they either currently see overwhelming demand from institutions or they see the asset class growing exponentially in the decades ahead.

Dubai Scores Cash for Crypto with the City’s First Bitcoin ATM

Bitcoin Perma-Bull Tom Lee Believes Bitcoin Price Should Be $15,000-$20,000

Bitcoin perma-bull Tom Lee of Fundstrat tried to buttress his recent projection that the bitcoin price is due for a major rally soon.

On March 17, Lee tweeted that the “tailwinds” that had dragged bitcoin down during the current Crypto Winter are easing.

Specifically, Lee claims that “macro factors such as a rally in risk assets plus the US dollar no longer surging are tailwinds for BTC.”

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Lee then claimed that a plunge in the emerging markets had “pulled down” bitcoin during the past few months. A correlation between bitcoin’s performance and that of the emerging markets has not been established.


Lee also noted that the recent rallies in the S&P 500 and small-cap stocks are greater than two standard deviations.

He then suggested that this means the bitcoin price would rise to $10,000 to $20,000 if BTC were to “catch up” to equities.

Thomas Lee@fundstrat

CRYPTO (1/2): earlier this year, we noted the “macro” factors such as rally in risk assets plus USD no longer surging are tailwinds 4

Chart shows EM in 2018 pulled down . Notice especially how tried to diverge in late 2018 but ultimately succumbed.

View image on Twitter

Thomas Lee@fundstrat

CRYTPO (2/2): natural question is how much implied upside to “catch up” to macro.

S&P 500+small-cap rally since 12/24 is >2 std dev.

1-std dev for is +185% gain. “Catching up” to equities implies $10k-$20k.

NOT OUR BASE CASE. Just highlighting macro tailwind. pic.twitter.com/p67FDNGmI3

View image on Twitter
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Meanwhile, many financial experts say there is no correlation between bitcoin’s price movements and the broader stock market.

“I like bitcoin because it’s not correlated with [the stock market],” said Bill Miller, the founder of Miller Value Partners.

“Bitcoin basically has no statistical correlation with stocks or bonds, which makes it an excellent diversifier.”

At this point, few in the crypto industry take bitcoin price predictions from anyone seriously, because even so-called experts have been way off amid the 2018 market crash.


As it is, Tom Lee was wrong on his predictions numerous times last year, as CCN chronicled.

In April 2018, Lee insisted that bitcoin would rally big-time right after tax season. At the time, Lee attributed the drop in bitcoin’s price to mass sell-offs caused by investors trying to sell off their cryptocurrency holdings to avoid paying taxes on them.

“Selling pressure for bitcoin should be alleviated after April 15th,” Lee said.

That rally never happened.

On May 31, 2018, Tom Lee’s colleague at Fundstrat — Robert Sluymer, the head of technical strategy — predicted that bitcoin would spike soon because it had finally bottomed, and technical analysis said it would rise.

“We think bitcoin is starting to bottom off some very key support around $7,000,” Sluymer said. “And we think it’s going to start a recovery process here.”

That rebound never happened.


Then, in November 2018 — at the height of the crypto bear market — Lee doubled-down on his exuberant $15,000 year-end bitcoin price target. At the time, Lee called the Crypto Winter an “awkward transition” that would pass very soon.

As we all know, that comeback also never happened.


Doubling Down: Tom Lee Won’t Abandon $15,000 Year-End Bitcoin Price Forecast https://www.ccn.com/doubling-down-tom-lee-wont-abandon-15000-year-end-bitcoin-price-forecast/ 

Doubling Down: Tom Lee Stands by $15,000 Year-End Bitcoin Price Target

Fundstrat co-founder Tom Lee stands by his reduced year-end bitcoin price target of $15,000, saying continued fallout from a market slump in tech stocks is putting pressure on cryptocurrencies. Lee’s…


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In December 2018, a frustrated Lee said he was finished giving price predictions given his history of inaccuracy.

However, he said that bitcoin’s fair market value at the time was $13,800 to $14,800. At the time, bitcoin never topped $4,180.


Bitcoin’s Fair Market Price is $14,800, Says Cryptocurrency Bull Tom Lee https://www.ccn.com/bitcoins-fair-market-price-is-14800-says-cryptocurrency-bull-tom-lee/ 

Bitcoin’s Fair Market Price is $14,800, Says Cryptocurrency Bull Tom Lee

Cryptocurrency bull Tom Lee says bitcoin’s dismal price of roughly $3,400 is wrong because its actual fair market value is $13,800 to $14,800. The Fundstrat founder said he made the assessment by…


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All these unreliable price projections have caused many in the cryptocurrency market to laugh off Tom Lee’s price predictions.

So when Lee once again insisted last week that a bull market lurks around the corner, many in the crypto-sphere couldn’t help but mock him.

One Twitter user remarked: “Is this the same Tom Lee that predicted Bitcoin to be $25,000 by end of 2018? Tom, you don’t have credibility in this space any longer.”


@CNBC uh. Is this the same Tom Lee that predicted Bitcoin to be 25k by end of 2018? Tom you dont have credibility in this space any longer.

See BigLebowski’s other Tweets

One user laughably recounted that Lee had set a whopping $100,000 bitcoin price target for 2018.

Samantha Chang@samantha_chang

Also Tom Lee: Bitcoin will end 2018 at $15,000.https://twitter.com/fundstrat/status/1073247029348970496 


Before that he said 100k

See Sowrabh’s other Tweets

Still another crypto enthusiast quipped: “The guy seems nice enough but has absolutely ZERO credibility at this point. Why does CNBC keep bringing him back? Seriously. Investors who listened to him got wiped out. You only get one shot on the big stage and he blew it.”

Another remarked: “I’m positive on Bitcoin and I don’t even believe this guy anymore. He’s been wrong more times than the weathermen in the Bermuda Triangle.”

tom lee bitcoin price prediction twitter


So the moral of the story seems to be this: You can be a bitcoin bull without looking like a shill if it doesn’t appear that you’re constantly pumping the market. That seems to rub even the most die-hard crypto fans the wrong way.

There are many smart people in the cryptocurrency industry who are confident that bitcoin will gain mainstream adoption and revolutionize the world. But revolutions take time, and progress is never linear. But the people who constantly talk it up are not doing true believers any favors.


Humanity Can’t Survive Digital Age Without Crypto: Circle CEO Jeremy Allaire https://www.ccn.com/humanity-cant-survive-digital-age-without-crypto-circle-ceo-jeremy-allaire/ 

Humanity Can’t Survive Digital Age Without Crypto: Circle CEO Jeremy Allaire

By CCN.com: Circle CEO Jeremy Allaire says humanity can’t survive the digital age without crypto because its decentralized nature and resiliency make it indispensable. Allaire made the remarks at the…


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Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.