After the event known as 'Black Thursday,' many concluded that crypto was doomed: substantial Bitcoin assets were liquidated, market liquidity evaporated amidst a single day's 50% plummet, and the vibrant Crypto Twitter community fell silent. BitMEX However, a fresh study suggests that contrary to crashing, institutional enthusiasm for Bitcoin is actually growing. Who would have guessed?
Guess what? Despite a 50% crash, big players still see potential in Bitcoin & Crypto.
According to Frank Chaparro, who manages news at The Block, Fidelity Digital Assets has acknowledged an increased appetite for crypto.
A spokesperson from Fidelity, in conversation with Chaparro, revealed:
From a trading standpoint, we're consistently welcoming new clients monthly and recognizing considerable growth in our prospects. […] As of late, our business momentum has picked up noticeably.
– Expanded our platform to execute trades via ErisX
Update from Fidelity Digital Assets:
– Receiving more inquiries from pension managers and family wealth offices
– Noted major expansion in our trading operations
– Investors intrigued by the 'digital gold' narrative
The reporter’s insiders backed this up, stating that Fidelity’s crypto wing is receiving more “interest from pension plans, family offices, and global macro hedge funds” as they seek more prudent investment options amidst the persistent pandemic.— Frank Chaparro (@fintechfrank) April 9, 2020
This has been corroborated through informal observations.
Institutional interest in Bitcoin In a recent conversation between Real Vision’s Raoul Pal and Pantera Capital’s Dan Morehead, both acknowledged seeing esteemed Wall Street managers and family office CIOs venturing into Bitcoin and broader crypto markets. Pal emphasized that, to his knowledge, almost every family office now holds a fragment of it.
It seems likely they’re tapping into this emerging space through avenues like Fidelity Digital Assets.
This trend appears to be driven by discussions around Bitcoin being seen as a 'store of value' or 'digital gold,” which are beginning to “connect with a wider audience.
, Mike McGlone from the commodity team highlighted that, with Bitcoin dipping merely “5 percent in 2020 compared to an almost 22 percent drop in the S&P 500,” he recognizes Bitcoin’s “gold-like progression, maturity, and performance.” Retail investors are also taking part in the recent Bitcoin rally, data reveals.
Indeed, in a recent Bloomberg report While it might feel repetitive, all indicators denote that individual investors are increasingly engaging in Bitcoin.
Similar Scene on the Retail Side
, a central hub for early Bitcoin adopters, experienced a surge in purchasing activity during 'Black Thursday':
“Not only was there a buying frenzy, but two things were evident: our retail brokerage clients were purchasing during the dip, and Bitcoin was their clear preference. Typically, customers buy 60% more than they sell, but during the crash, this spiked to 67%, taking advantage of market lows and reflecting strong interest in crypto despite extreme volatility.”
As reported by Blockonomi previously , Coinbase Other metrics also affirmed this. For example, noted crypto trader Nik Patel observed that on three UK-based crypto-friendly brokerages, a significant majority of traders favored long positions in Bitcoin.
For instance, IG.com, an online derivatives platform, noted 78% of their clients trading BTC are bullish, as opposed to the 22% betting against it.
Three of the UK’s foremost retail brokers
And speaking from personal experience, I’ve received a surge of calls and messages about Bitcoin from friends and family over the past few weeks.
I'm a journalist who has been immersed in the cryptocurrency domain since 2013. My work and interviews have been highlighted in prominent crypto publications like LongHash, NewsBTC, and Decrypt. When not writing, you can find me collaborating with HTC's EXODUS team. I hold a modest amount of Bitcoin. Reach me at [email protected]. pic.twitter.com/kIvSpcvemG
— Nik Patel (@cointradernik) April 4, 2020
Fidelity Rolls Out Crypto IRAs Featuring Bitcoin, Ethereum, and Litecoin
