Fidelity and Black Rock Keep Expanding Their Crypto Influence

Fidelity Investments and Black Rock – two of the biggest investing companies in the world – are slowly expanding their reaches into the crypto and blockchain spaces.

Fidelity and Black Rock Are the New Crypto Leaders

Fidelity has long been a crypto player, going so far as to last year, when the space was enduring its biggest bear run in history, allow retirees and those with 401K funds to their names to use their hard-earned money to invest in digital assets like BTC and Ethereum. This move caught a lot of people off guard and even made certain individuals – such as democrat senator from Massachusetts Elizabeth Warren – very angry.

But this hasn’t stopped the company from moving forward. Fidelity has long commented that crypto is the wave of the future, and it’s not about to prevent people from getting involved early. It and Black Rock are now leading the charge for standard financial investment firms to grow alongside the arena. Larry Fink – the chief executive of Black Rock – explained in a letter to investors:

At BlackRock we continue to explore the digital assets ecosystem, especially areas most relevant to our clients such as permissioned blockchains and tokenization of stocks and bonds. Very interesting developments are happening in the digital asset space.

Bitcoin is already up more than 50 percent from where it ended 2022, and it’s reached a nine-month high. Last year was arguably the worst year for digital assets, with the space losing more than $2 trillion in valuation and currencies such as bitcoin dropping by more than 70 percent. The asset had reached a new all-time high of about $68,000 per unit in November of 2021, though about 12 months later, the currency had dropped into the $16K range. It was a sad and ugly sight to see.

Now, however, BTC – at the time of writing – has shot up to about $28K per unit. This isn’t where it was two Novembers ago, but it’s a step up from where it sat last December, that’s for sure, and many asset holders are starting to once again hold a strong belief that there’s more to crypto than meets the eye.

Next year, another bitcoin halving will be upon us, and some analysts are convinced that what we’re witnessing today could be attributed to the anticipation many investors and traders are beginning to feel about the event. It is well documented that prior to every halving, BTC incurs a solid price boost, and some believe this time around will be no exception.

The Next Halving Is Coming

Alex Thorn – Galaxy’s head of research – said in emailed comments:

We’re about a year away from bitcoin’s next halving. Historically, these have been bullish events for the digital asset.

The next halving is currently scheduled to happen a year from now (April of 2024).

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