The popularity of Ethereum may soon get a boost, as Digital Asset giant Fidelity throws its weight on the crypto coin. The Block recently reported that Fidelity Digital Assets wants to throw its support on Ethereum.
The report stated that Tom Jessop, the Crypto chief of Fidelity Investment, gave out a podcast on the company’s intention to invest in Ethereum next year.
According to the report, Jessop, a Wall Street expert, is bringing his experience into the new crypto-service of Fidelity. In a recent interview, he claimed that he and his team have put up so many things in place to make sure the Ethereum launch is successful.
Why Ethereum service has not been launched yet
Jessop gave reasons why the company has not launched the service yet. According to him, there has not been a strong market demand for Ethereum, one of the largest cryptocurrencies in the world. He also stated that the strong demand for Bitcoin had overshadowed the demand for ETH.
According to him, this has held the company back from launching ETH because it doesn’t know how the market will perform for ETH services. He also stated that the strong institutional framework for Bitcoin had prevented Fidelity from launching ETH services. But Jessop reiterated that they are not looking back now, as he stated that the ETH service would be launched next year.
Earlier in the year, Jessop explained that Fidelity could delay the launch of ETH because of changes in the crypto coin’s protocol. He said the company has been struggling to get enough online support for the launch of the cryptocurrency. To him, most people have not thrown their full support on ETH because they are not yet convinced the coins would remain stable. There is no indication of longevity or durability since the history of the asset is not too far off.
This latest comment by Jessop is coming against the backdrop of the recent license Fidelity Digital Asset Service received from the Department of Financial Service in New York. The department had given Fidelity the license to start up a trade execution and crypto custody platform. This platform will cater to New York residents and Institutions who would like to invest in the cryptocurrency. New York is a strategic location because that’s where much of American wealth is traded and managed.
What Fidelity can bring to the Crypto community
Brian Kelly of HKCM spoke at a CNBC Fast Money program earlier in the year.
— CNBC's Fast Money (@CNBCFastMoney) October 10, 2019
He maintained that Bitcoin ETF is not very important in the growth and development of cryptocurrency in the Blockchain industry. He defended his rather controversial statement by bringing up the fact that other developing on-ramps could easily replace Bitcoin ETF.
In his assertion, very soon, Bitcoin ETF would not be as important as it is now. According to him, ETH could be an alternative on-ramp that can take the place of Bitcoin ETF. And Fidelity Digital Asset Company could provide that opportunity with its large market capitalization.