Just a little correction! It has not yet started but just got announced that they are very close to starting it. Read the news here,
https://www.fidelity.com/crypto/tradingThey have started registering interest from the market. Also you need to note one very important point from their website FAQ section,
Can I transfer crypto into and out of my Fidelity CryptoSM account?
In this early version of Fidelity Crypto you won't be able to receive or send cryptocurrency transfers. But we're always working on new features. Turn on your notifications to receive updates.
So it's very similar to what Paypal offers in the market already. Trade and take your profit in fiat. No crypto transfer is allowed at this moment.
Yeah, that's what I thought of and made me think if they're going to push through by allowing crypto to crypto deposits and withdrawals soon. PayPal took time until that happened and probably had been pushed because of the feedback of the community.
I am neither bullish that this will have a price effect, nor because of this centralized platform getting involved in BTC trade because i don't feel people would create new accouts on Fidelity just to trade BTC when there are crypto exchanges available to them that gives them so many options to trade; so the people who would probably use this are BTC people who already use Fidelity, and it may also encourage non bitcoiners to try it out too.
Well, it's like a test run on their customers that have received the email for those that are eligible to do bitcoin trading on them. But as said, it's not yet on the go but they've just announced it. So for now, too many things to consider and those that are eligible for it might really try them and will get a statistics for it on how it will result. And yes, it's only for their existing customers so no outsiders yet.
3.
As a condition of your use of the FIDELITY DIGITAL ASSETS Sites, you agree to indemnify and hold the FIDELITY DIGITAL ASSETS COMPANIES and their Third-Party Content providers harmless from and against any and all claims, losses, liability, costs and expenses (including but not limited to attorneys' fees) arising from your use of the FIDELITY DIGITAL ASSETS Sites, or from your violation of these Terms.
Unless otherwise agreed, FIDELITY DIGITAL ASSETS may discontinue or modify the FIDELITY DIGITAL ASSETS Sites at any time without prior notice to you, and you accept those modifications if you continue to use the FIDELITY DIGITAL ASSETS Sites.
Termination
FIDELITY DIGITAL ASSETS may terminate your access to the FIDELITY DIGITAL ASSETS Sites for any reason, without prior notice.
the part(3) is strange. because most GOOD services still allow account access, but will suspend the 'trading/market' option/service within a users account. so that users can still see balances and also withdraw balance while being suspended from 'using the service to do any trading'
it seems if they ban you. they really do ban you, rather then suspend your trading activity and asking you to take your money and leave
I think most exchanges are doing that, when they ban and suspend your account you have no other option but only given to withdraw the remaining funds on your account. What seems to be highlight on this 3rd part is about the first part including the "claims and losses" part.
This is a good development as far as I know, but it would not in any way make cryptos bullish, it would only excite the market. Fidelity as far as I know has been showing interest in the crypto space for a while but treads cautiously. Maybe it's time for them to use their resources to fit in the collapse of FTX. And if I should be asked, I would say it's the right thing to do for a serious company that has all it takes.
This is because they are already in the financial and investment world before the opportunity.
Yeah, they're already in the market for so long and it's a timely action that they've been able to announce this so that they'll at least get customers from the fall of FTX. But for the most, we still know that this is a centralized exchange although known for its financial service, who knows what can happen in the future but as for the development, we both agree that it's good.
As pointed out already, this is pure trading/speculation. NOT investment or storing digital assets, which I think it already does separately.
This version of Fidelity does not have a Bitcoin wallet, that to me is very clear that it makes it no different from having a Paypal account. You can "buy" Bitcoin but in reality you're just buying an IOU from a trader, who probably never even actually goes to have a bitcoin in his wallet.
It's just a guy with a lot of money (liquidity) from others and he's opening new trading markets.
I guess the thing about them is that they're already known in the sector of finance and that's why it's sort of a big news for majority. And as what everyone has said, it's like a PayPal thing but we don't know if they'll apply as soon as possible when they operate if they'll move like an actual exchange such as Binance, etc.
If the Michael Saylor microstrategy company could not make much impact in affecting the bitcoin price despite it's continuous buy and accumulation of bitcoin then i think Fidelity is too small compared to microstrategy neither will it intent to accept bitcoin will make any glaring difference with the price, the demand and supply analysis goes beyond this alone because bitcoin is widely distributed across the globe and people are buying and selling each day, the shift in equilibrium is determined only by it supplying and demand capacity after considering daily market cap and volume, fidelity could also take this good opportunity with bitcoin for it financial decentralization benefit.
Props to him but I can say that he had made a difference during the bull run with such news that had been released about his moves. This time, any good news won't affect that much because it's hard to beat up the bearish sentiment of the market. When it's come to their capitalization, $10B is for Fidelity and around $1B for Microstrategy. With the reach of both for their customers, they'll still contribute to the market when it's back bullish.
users should really try to keep an eye on the user agreement of how it treats its customers.
if (when open) fidelity operates more like greyscale than coinbase when it opens. because trusts do not treat the coin deposited as the customers. the customers are given shares which represent an % of an allotment of the trusts holdings
if (when open) fidelity operates more like coinbase than greyscale when it opens. because exchanges can have terms that dont let users get their funds out if unregulated or if they have certain business terms
from learning about many exchanges and services in recent weeks. dont just blindly adore and believe in a brand because you recognise the name..
read the terms of service/user agreement for how it treats the customers assets and be risk aware
seems a few people in this topic are already blindly hyping up and getting exciting and just taking things on utopian face value that its all rosy and sunshine..
handing any funds to a custodian/trust/exchange should be where people are educating each other to be cautious and check on who they are giving funds to.
You're right about that and I agree. And as you've said about it earlier, they're not yet operating and it's just going to happen for their existing and chosen customers which means to say that it's not yet open to the public. Having that said, at least we'll be able to see how it's going to roll to its existing customers, and we'll hear for sure feedbacks from them.
Looks interesting. Fidelity has log been one of the more conservative brokers out there in terms of what they offer. Looks like they are slowly starting to try to offer crypto services instead of just opening up the floodgates. Not sure if it's a better or worse way to do it.
Since a lot of the people using Fidelity are people who may or may not be familiar with crypto I can see them having different tiers of what is available, much like they do with some of their regular offerings. i.e. certain types of accounts can't margin trade while others can go to 90%
As with everything with big business, it's probably going to be a long slow process for it to be fully implemented.
-Dave
And what's good that I can see on it, those that are not yet versed with crypto will have an idea on how it goes since it will be added to their accounts availability. At least, that's the beauty of this news that those who wants to step in to the crypto market, they'll be introduced by Fidelity.
Nothing special. As long as it's a centralized platform, there is no different from other centralized exchanges (CEX). And they say there is no commission for your trades (free), but there is a spread charge. It's still a fee
(for me), same with other CEX.
*You will not be charged a commission on bitcoin or ether (“crypto”) trades placed through Fidelity Crypto. Fidelity Digital Assets will collect a spread (assessed at no more than 1%) calculated 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 reflected in your execution price. For an initial period, Fidelity Digital Assets may in its discretion decide not to charge a spread. Fees are subject to change.
Source: Fidelity.com-footnote
Maybe it would be more interesting if they made a decentralized trading platform.
Most new exchanges are having that type of promo regards to their fees but eventually, when they've been established with their users they'll suddenly change the terms a little by little. The idea of making a dex platform, I think the name of theirs will still tied on it and people would still have the impression like this; "a dex that's made by a cex".
How come Fidelity catches FTX customer while the customer funds is already stuck on the FTX by the time FTX halt the withdrawal and file bankruptcy to save there company. There situation is with Celsius that gives no guarantee to all there users if they will still recover there funds or not. I doubt all the victims will still invest on services like this despite they are huge company. FTX is once the second largest crypto exchange in crypto yet they still fall with just some string pulled by high profile player like CZ.
It's about the idea if you get it that those people lost trust in exchanges like FTX, here comes Fidelity with a big name announces that soon they'll be able to open trading.
I think they will allow it since Coinbase and FTX is doing it. Only ETF is not approved to have a physical backed. They can do actual trading of Bitcoin and cryptocurrency by getting a license that same with Coinbase scope since US is already fully equipped by law for this kind of business.
Yes, it's just all about the time as they said they'll will add it soon.
They are a big institution, they will probably be working together with CFTC and SEC just like FTX.
And they are going to be like FTX again. Considering the timing of its near launch, they are probably looking at those guys who are still gullible enough to trust an exchange like FTX. We were advised to withdraw assets from exchanges and now we are back again to trusting a CEX. Not your keys, not your coins.
I won't defend them that they won't be like FTX because of how they big but we don't know what's the future in most of these companies. This is the crypto market, we've seen the best and the worst from it, we'll never know. But the thing as an individual, we're aware on how to keep our funds safe and not to trust them wholly.
