According to an article published on CCN, Fidelity Investment Firms has temporarily halted its intentions to launch cryptocurrency fund after key members and investors decided to leave the company. The Fund was launched in 2017 and its main objective is to come up with a cryptocurrency that will benefit the investors and the firm at large.
It is reported that the firm used the extra funds it had in account to invest in high-risk high return assets and this did not go down well with some of the members. Notably, the decision to invest in the assets was done after an extensive analysis of the financial stability of the firm.
However, a report that was made public in June 9th, 108 has revealed that the small fund set aside for cryptocurrency investment is not operational at the moment after some of the main staff members who were tasked with steering the department left the firm. As a result, plans for Fidelity to launch its own exchange platforms hangs on the balance as there is no clear information on whether the firm still plans to establish the exchange.
Fidelity Lost Cryptocurrency Experts
Interestingly, two former staff members who were part of the management team Nic Carter who worked as a financial analyst and Matt Walsh the ex-Vice President went ahead to establish an independent cryptocurrency fund after leaving Fidelity Investment Firm. The fund is called Castle Island Ventures but it is still not clear if it is operational.
Nonetheless, it is too early to conclude that the firm will not set up the exchange platform owing to the fact that it is ranked among the largest financial service provider of retirement products here in the United States. Launching the exchange platform and making sure it is fully functional would significantly promote its growth and expand its clientele base. Hordes of investors who are currently on the sidelines would take that opportunity to invest in the project thereby increasing its chances of being successful.
Other crypto-talents who left the firm include digital marketing manager Ben Pousty who joined Circle and Kinjal Shah who used to work as a consulting analyst. Shah ditched Fidelity to join Blockchain Capital. At the moment, the firm is desperately looking for a competent fund manager who will oversee the operations at the cryptocurrency department.
Other Financial Service Providers Venturing into Cryptocurrency
Fidelity Investment Firm is not the only company in this niche that is seriously considering venturing into the cryptocurrency industry. Other financial service providers who have shown interest in the industry include New York Stock Exchange and Intercontinental Exchange.
Goldman Sachs have also confirmed that they have completed setting up a bitcoin trading desk for its clients and will be fully operation later this year. Notably, a significant number of financial institutions are still reluctant to invest in digital currencies due to the various risks such as price volatility and lack of proper regulations in most parts of the country.