Retail investors at investing giant Fidelity will soon be able to trade cryptocurrencies commission free.
Key Details
- After a while of cryptocurrencies being on the backburner after facing big price drops, many institutional investors are beginning to accept the digital coins again.
- Now as the currency is becoming widely accepted once again one of the largest crypto brokerages is beginning to allow retail investors to trade cryptocurrencies commission free.
- The new offering hasn’t set an official launch date, but a waitlist was opened for users who want to take advantage of the opportunity.
Why it’s news
Cryptocurrencies had a rough summer hitting major slumps and big sell-offs.
June especially was a brutal month for cryptocurrencies. Bitcoin dropped 37.3% in June alone—giving it the largest fall since 2011. The sell-off was triggered by inflation fears and investors trying to liquidate.
The major sell-off caused job cuts in many crypto companies and even forced some lenders to pause withdrawals. In July things started looking up as Bitcoin and other cryptocurrencies skyrocketed with a major comeback after the large tech-stock selloff.
Now, crypto seems to be back in investors’ good graces as more and more are seeing cryptocurrencies as worthwhile holdings.
Fidelity Investments is confident in the crypto market and has decided to launch a commission-free crypto trading product for retail investors.
The new product is called Fidelity Crypto and will be powered by its subsidiary—Fidelity Digital Assets. The service will allow retail investors to buy and sell Bitcoin and Ether with very small fees.Instead of charging a commission Fidelity will incorporate a 1% spread into every trade.“Where our customers invest matters more than ever,” Fidelity said in a statement shared with CNBC. “A meaningful portion of Fidelity customers are already interested in and own crypto. We are providing them with tools to support their choice, so they can benefit from Fidelity’s education, research, and technology.”
