Merrill Lynch closed access to GBTC for its clients

The decision to close the GBTC for new transactions was dictated by concerns related to the fitness and viability of the standards of this product
04 January 2018   881

Merrill Lynch, a large US bank that was integrated into the Bank of America several years ago, banned its customers and consultants who carry out transactions on their behalf to buy bitcoin through the Grayscale Investment Trust. This is reported by the WSJ. Earlier, Merrill Lynch refused to provide customers with access to bitcoin futures.

Grayscale Bitcoin Investment Trust or GBTC is a trust fund operating exclusively with bitcoin, the yield of which is determined by the indicators of the crypto currency. It was created as a tool for traditional investors wishing to earn on the growth rate of bitcoin.

In Merrill Lynch, there is no consensus on the latest decision of the bank's management. Some consultants complain that they miss the opportunity to trade, which their clients are actively interested in.

Others argue that restricting access to bitcoin will help protect investors from excessive risks.

In October last year, analysts at Merrill Lynch said that the real cost of bitcoin can not be estimated.

Fidelity Investments to Launch BTC & ETH Platform

New platform is designed for institutional investors
16 October 2018   195

One of the world's largest asset managers, Fidelity Investments, announced the launch of a unit focused on providing institutional investors with Bitcoin and Ethereum services. The Forbes reports.

The new division received the name Fidelity Digital Assets and, possessing a staff of 100 employees, will provide a platform for trading cryptocurrencies and consulting services 24/7.

The platform already has first customers, but its launch for a wider range of investors is scheduled for the beginning of 2019.

This is a recognition that there is institutional demand for these assets as a class. Family offices, hedge funds, other sophisticated investors are starting to think seriously about this space.
 

Tom Jessop

Founding head, Fidelity Digital Assets

In particular, Fidelity Digital Assets will offer a transaction service that, using internal cross-connect and order routers, will trade through third-party liquidity providers.

One of the most popular offers by the company can also be a service for storing Bitcoin and other cryptocurrencies. It is physical storage, distributed in different geographical locations and offering the so-called "cold" storage of digital assets. This way of storing cryptocurrencies without access to the Internet and with a multi-level control system is considered to be one of the safest and most resistant to hacking today.

As the CEO of Fidelity Investments, Abigail Johnson, said, the goal of the new platform is to make digital assets like Bitcoin more accessible to investors.

Fidelity Investments is considered the fifth largest asset manager in the world, offering investment and custody services to 13,000 consulting firms and brokers. In total, the company manages assets worth $ 7.2 trillion.