 |
July 25, 2019, 08:51:25 AM |
|
Recently, Fidelity, the world’s largest asset management company, has applied for the trust service license to the New York Department of Financial Services. The approval time is generally about half a year, and once it is successfully approved, Fidelity can provide New York investors with encrypted assets (such as Bitcoin) custody services. If a company has a trust license, it can provide a variety of financial services to the market, especially in the cryptocurrency market now in the center of the storm. From this point of view, Fidelity has greater ambitions for cryptocurrency asset management.
In recent years, the development of cryptocurrency has been far beyond market expectations. The exchange only supported spot trading at the beginning, and then to the futures contract trading, and now to the upcoming Fidelity Trust Service. These functions and services are already rather mature in traditional financial markets, and now these traditional financial instruments are moved into the industry of cryptocurrency. One of the main reasons for the explosive growth of cryptocurrency is that it has the natural advantage of blockchain technology. With some innovations, its financial services will be safer and more efficient than that of traditional finance.
Following this trend, the cryptocurrency industry will continue to mature and improve, and more financial instruments will be developed to serve us soon. However, compared to common securities markets, the biggest characteristic of cryptocurrency is its high volatility, which is also a disadvantage. And its higher volatility than the traditional assets will lead some investors to hesitate to participate in the transaction. The only way to solve this shortcoming is to launch the corresponding stable funds or ETF. If the company can launch an ETF-like product in the future, it will attract investors and take the lead in the market. Traditional stock ETFs with less volatility is mainly linked to a basket of stocks, which is the preferred target for stable investors. The same is for the crypto ETF. It is linked to a basket of mainstream cryptocurrencies (such as BTC, ETH, and USDT), which can effectively reduce its price volatility, and maintain or increase the value of the investor’s wealth. It can also be used as a hedging tool in the cryptocurrency market, with which investors can hedge the risks and conduct more diversified investment. It is reported that the BitOffer financial team, a cryptocurrency exchange from Singapore STO, is actively studying the crypto ETF. It plans to officially launch an ETF product called “LT” in the second half of this year to meet the needs of investors.
Judging from the development trend of the cryptocurrency, its gradual securitization is an indisputable fact, and the regulation of the issuance of cryptocurrency will be implemented. Cryptocurrency has much more advantages than traditional finance because of blockchain technology, and it will even surpass the securities assets to become the preferred target of investment. At the same time, the exchange market will be highly competitive in this process. Financial technology innovation will bring us better services, and this is what the investors hope to see. The company which can provide better services and innovative products can seize the market opportunity. Will BitOffer financial team can take the lead in the market? Let us wait and see!
|
