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Fidelity to Launch Canada’s First Institutional Bitcoin Service after Regulatory Approval

Fidelity to Launch Canada’s First Institutional Bitcoin Service after Regulatory Approval

Fidelity Clearing Canada (FCC) ULC has become the country’s first licensed firm to offer Bitcoin custody and trading services for institutional investors.

The green light from regulators clears the way for institutional clients to invest in Bitcoin through pension funds, portfolio managers, mutual funds and ETFs.


    A Catalyst for Institutional Investors


    The Investment Industry Regulatory Organization of Canada (IIROC) approved Fidelity to provide institutional investors direct exposure to Bitcoin. FCC president Scott Mackenzie said in a press release:

    “This is a very exciting development for our clients, interested Canadian institutional investors, and for Fidelity Clearing Canada […] the demand for investing in digital assets is growing considerably, and institutional investors have been looking for a regulated dealer platform; to access this asset class.”

    Before the launch, most Canadian-based digital funds relied on U.S.-based custodians. FCC’s decision to introduce the products locally might nudge more institutional investors towards joining the crypto market.

    The product will initially offer Bitcoin trading and custody services for institutional investors. However, the process of filing for permission to offer Bitcoin exchange-traded funds and oriented mutual funds targeting retail investors is ongoing.  


    A Critical Role in Bitcoin Adoption


    Fidelity is playing a critical role in Bitcoin adoption with products for the U.S. and European markets. A survey by the company showed that over 70% of institutional investors planned to invest in digital assets in the near future.

    Canada became the first country globally to approve Anti-Money Laundering (AML) regulations for cryptocurrency service providers, but the journey towards crypto adoption hasn’t been smooth.

    Many will remember the collapse of QuadrigaCX and the mysterious death of Gerald Cotten, its founder. It was alleged that Cotten alone had access to private keys for digital assets worth over $143 million belonging to 115,000 investors.

    As the crypto industry comes of age, it is clear that mainstream adoption is the has been the big narrative of 2021. The price of Bitcoin against the U.S. dollar hit an all-time high of $68,521 on November 5, 2021. The trend has been so bullish that Bloomberg predicted the $400,000 price tag for Bitcoin by the end of 2022.

    Bitcoin has continued to disrupt the traditional financial landscape following the money printing spree by governments during the Covid-19 pandemic. Companies focused on blockchain, and cryptocurrency technologies have sailed along with the “store of value” narrative and enjoyed an increase in the value of their businesses in the wake of Bitcoin’s rise.

    This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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