• Fidelity Investments has now made it possible for customers to buy and sell bitcoin through its Fidelity Crypto platform.
• Customers will be able to buy and sell bitcoin, but not transfer it to a self-custody wallet where the user controls their own private keys.
• There has been criticism of this move from senators, citing the volatile and risky nature of cryptocurrency.
Fidelity Crypto Platform Now Open to Public
Fidelity Investments has announced that its Fidelity Digital Assets platform is now available to the public, allowing customers to buy and sell bitcoin. This service was first opened up with a waitlist in November 2022.
Buying/Selling Bitcoin
Customers are able to purchase and sell bitcoin on the platform; however, they will not be able to transfer it into a self-custody wallet in which the user holds their own private keys. During the launch of the waitlist in November 2022, there was mention that this ability would come later but no details or roadmap have been provided since then.
Charges/Limitations
When trading on Fidelity’s Crypto platform, customers will not be charged fees but rather a 1% spread which is defined as “the difference between the price at which you buy or sell crypto in your Fidelity Crypto account and the price at which Fidelity Digital Assets fills your order”. This spread will be visible in client execution price. Trading is only available for U.S citizens over 18 years old who reside in eligible states.
Criticism of Move
The move by Fidelity into cryptocurrency has been met with some criticism from senators who wrote in a letter addressed to them: “Fidelity Investments has opted to expand beyond traditional finance and delve into the highly unstable and increasingly risky digital asset market”.
Self-Custody Is Key
Although Fidelity is often regarded as being trustworthy institution, it should still be noted that trusted third-parties are security holes, hence why self-custody is key when using bitcoin as one needs full control of their private keys for true sovereignity over funds
