Following the news of Fidelity Investments’ Bitcoin (BTC) fund filing, Mike Alfred, CEO of analytics outfit Digital Assets Data, described continued hesitancy in mainstream finance when it comes to Bitcoin.
“Many in the traditional financial services/asset management/wealth management verticals remain deeply skeptical of Bitcoin and the ecosystem,” Alfred told Cointelegraph on Sept. 10. “One commenter on my LinkedIn yesterday even called Fidelity’s move ‘Abby’s folly,'” he said, which takes a shot at Fidelity CEO Abigail Johnson in reference to her activities and position as an early Bitcoin adopter.
A mainstream financial services entity, Fidelity, with its daughter company, Fidelity Digital Assets, has made a name for itself in the crypto space in the arena of crypto custody. On Aug. 26, 2020, Fidelity filed for a Bitcoin trading product — the Wise Origin Bitcoin Index Fund — under a Regulation D exemption with the U.S. Securities and Exchange Commission, or SEC.
“From a contrarian standpoint, I think this skepticism and disbelief will serve as fuel for Bitcoin’s adoption and price increases in the future,” Alfred said. “As these traditional folks capitulate, they will be forced by their clients and partners to get involved at significantly higher prices,” he added. “I think BTC has a very long runway ahead.”
A few months back, Alfred mentioned evidence of growing mainstream financial interest in Bitcoin. Fidelity’s Bitcoin fund, as well as the entity’s work in the crypto space, furthers this point, he explained.
“I think it speaks to my previous comments about growing interest and awareness in the traditional asset management and wealth management spaces in the US. Serious adoption in those channels would be extremely bullish for BTC. Fidelity is leading the way.”
Other indications of growing mainstream Bitcoin interest have also surfaced in 2020, such as participation from big players such as hedge funder Paul Tudor Jones.