'Crypto is still very much an early adopter market'

28 Mar, 2019
by Joeri Cant
'Crypto is still very much an early adopter market'

Tom Jessop, head of Corporate Business Development at Fidelity Investments and president of Fidelity Digital Assets said that cryptocurrencies are clearly still in early adopter playground.

The head of Corporate Business Development at Fidelity Investments said that it is interesting to see, when you look at the data, that it is still very much an early adopter market for cryptocurrencies.

'What’s interesting when you look at the data, as you might expect, it’s still very much an early adopter market, like the folks that you would look at, and say would tend to be more of the risk taking investors on the spectrum, so the hedge funds, and perhaps the family offices are further ahead than the pension funds and the endowments', Jessop said.

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Jessop pointed out that Fidelity started with what he would describe as ‘crypto-native’ types. 'So a lot of crypto hedge funds', Jessop said.

However, he doesn't seem to think that the market’s ready for this, while referring to potentially bringing in the 401k side to crypto.

'When you’re talking about institutional liquidity, given that many of these exchanges have effectively retail order books, the price impact of big, institutional orders into a framework like that can be significant.'

The entire cryptocurrency market cap stands  currently at about $140 billion, which can be compaired to one publicly traded stock company.

'It’s just 10% of Apple shares', Jessop points out. 'The global stock market by comparison is $100 trillion, making cryptos 0.1% of it. Then you have the gold market which is some trillions, housing of course, bonds, and so on.'

'In many ways cryptos are tiny fish in that big picture where we’re talking of $2.5 trillion to be spent somewhere with the hope of making a return.'

In March Chepicap reported that Jessop claimed that the recent Constantinople hardfork may delay support for Ethereum (ETH).

Jessop claimed that FDAS plans to scale gradually over the rest of 2019, acquiring all the necessary licenses in order to cover around 90 percent of the U.S. by the end of the year. According to Jessop the service has "seen consistent interest from institutions...largely because institutions have been doing their homework and returned to understand the space, and quite frankly wouldn’t make a decision to invest at any price until they really understood their own personal [investment] theses".

Read more: BTC and ETH might not be the only cryptos in Fidelity, says CEO

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