Latest news with #FidelityDigitalAssets
Yahoo
25-04-2025
- Business
- Yahoo
Bitcoin Reserves on Exchanges Drop to Lowest Level in Over Six Years as Public Companies Purchase 425,000 BTC
Bitcoin reserves on exchanges have dropped to their lowest levels since November 2018, with a significant decrease observed since November 2024. This reduction, totaling more than 425,000 BTC, is largely attributed to public companies acquiring the digital asset. According to Fidelity Digital Assets, the current supply of Bitcoin on exchanges is approximately 2.6 million BTC, marking the lowest level in over six years. Publicly traded companies have been responsible for purchasing nearly 350,000 BTC, a trend that is expected to continue growing in the near future. One of the primary drivers behind these acquisitions is Strategy, a firm co-founded by Michael Saylor. Since November 2024, Strategy has accumulated 285,980 BTC, making up a significant portion of the total Bitcoin bought by public companies. The latest purchase by Strategy, 6,556 BTC, was disclosed in April 2025. Additionally, companies outside the U.S. are also adopting similar strategies. Metaplanet, a company in Japan, holds 5,000 BTC and aims to double that number this year. In Hong Kong, HK Asia Holdings has announced plans to raise $8.35 million to increase its Bitcoin reserves. The removal of Bitcoin from exchanges has had a noticeable effect on the market. Between April 19 and 23, 15,000 BTC left exchanges, coinciding with Bitcoin's price rising above $93,000. This followed a previous period when Bitcoin inflows to exchanges surged by 15,000 BTC. These movements suggest that investors may be moving their Bitcoin off exchanges for long-term storage, rather than selling or trading it. This pattern of accumulating Bitcoin off exchanges is often seen as a sign of long-term investment. Despite the increasing demand from institutional investors, overall market liquidity remains low. The demand for Bitcoin has decreased by 146,000 BTC over the past 30 days, although this is less than the 311,000 BTC decline seen in March 2024. Additionally, momentum from new buyers has slowed, with a drop of 642,000 BTC over the last month. Spot Bitcoin ETFs have also seen minimal activity in 2025, with net outflows of 10,000 BTC, compared to net purchases of 208,000 BTC by this time in 2024. The decrease in Bitcoin on exchanges has contributed to a shift in market dynamics, with smaller retail players becoming more active. The Exchange Whale Ratio, a measure of large traders' dominance, fell below 0.3 in April 2025, indicating that retail investors are having more influence on the market. Despite this, Bitcoin's price remains volatile, and a sudden shift in market conditions could push Bitcoin past $98,000, though strong demand signals are necessary for sustained growth. Sign in to access your portfolio
Yahoo
08-04-2025
- Business
- Yahoo
Is Bitcoin About to Go Parabolic?
For many crypto investors, it might seem impossible that Bitcoin (CRYPTO: BTC) could come roaring back to life and skyrocket higher in 2025. After all, Bitcoin is down almost 30% from an all-time high of $109,000 in January, and the intensifying global trade war threatens to cut any nascent crypto rally short. However, according to a recent report from Fidelity Digital Assets, the price of Bitcoin could actually be ready to skyrocket. All signs point to Bitcoin having one last major rally in 2025. So is Fidelity right? To answer this question, it's important to understand the historical four-year Bitcoin cycle: An accumulation phase, a growth phase, an acceleration phase, and a crash phase. The real profits are made during the acceleration phase, when Bitcoin becomes highly volatile, and suddenly shoots higher. This phase is the culmination of a super-frothy, super-speculative rally that takes Bitcoin to new highs. Fidelity thinks this will happen as soon as Bitcoin regains the $109,000 level. If that happens, it's all systems go, and you'd better buckle your seatbelt, because Bitcoin is about to skyrocket higher. The good news is that, according to different key indicators used by Fidelity, Bitcoin still appears to be in the acceleration phase. In this context, says Fidelity, the recent decline is nothing out of the ordinary. In previous acceleration phases, Bitcoin also had significant, double-digit drawdowns. According to the myth and lore that has developed around Bitcoin, this is when you need to have "diamond hands" (and not "paper hands"). In other words, you need to hold on to your Bitcoin with rock-hard determination, despite intense market volatility. But there's just one catch: The time remaining for such a rally is rapidly disappearing. Fidelity Digital Assets has carefully studied past Bitcoin cycles, and determined that we are close to the end of the typical acceleration phase. Previous acceleration phases have lasted for 244, 261, and 280 days. As of April 4, we are currently more than 250 days into the current acceleration phase. So if Bitcoin doesn't shoot higher before the start of summer, it may be the end of the acceleration phase. That's when Bitcoin could really be in trouble. As noted above, the fourth phase of the four-year cycle is the crash phase, when Bitcoin's value sinks like a rock. By now, you've probably mentally noted a few red flags. The first red flag is that all of this analysis is based on Bitcoin's performance during previous market cycles. And, as we all know, past performance is no guarantee of future results. This is especially important to keep in mind with Bitcoin, because it is a relatively new digital asset. The second red flag is that this parabolic rally scenario doesn't take into account the current macroeconomic reality. In other words, "Liberation Day" -- the day that the Trump White House introduced sweeping global tariffs against nearly every nation in the world -- might not be so liberating for Bitcoin or any other asset. It's up to you to decide if investors will move into Bitcoin as a haven from the global macroeconomic storm. In the first day of trading after tariffs were announced, Bitcoin appeared to hold up better than many tech stocks. That could be a sign that investors have not given up on Bitcoin quite yet. If you believe in the Bitcoin cycle, you also need to believe that the acceleration phase will eventually be followed by a crash phase. This was the case in 2014, 2018, and 2022, when Bitcoin suffered staggering declines of 58%, 74%, and 64%. Moreover, there's not much time left for Bitcoin to go parabolic. So even if you manage to load up on Bitcoin in the coming weeks or months, you are likely to see the value of those holdings crash back to earth in late 2025 or early 2026. That's just the way Bitcoin works. Investing in Bitcoin has never been for the faint of heart. The best way to invest in Bitcoin is to take a long-term approach, such that you are not constantly checking the price of Bitcoin every 24 hours. Bitcoin is still the one crypto that you can buy and hold forever, as long as you can accept its boom-and-bust cyclical nature. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $461,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $578,035!* Now, it's worth noting Stock Advisor's total average return is 730% — a market-crushing outperformance compared to 147% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 5, 2025 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. Is Bitcoin About to Go Parabolic? was originally published by The Motley Fool
Yahoo
02-04-2025
- Business
- Yahoo
Fidelity's new IRA lets you invest in crypto at no fee
On Apr. 2, Fidelity Investments launched a new individual retirement account (IRA) that lets American adults invest in cryptocurrencies in a tax-friendly manner. All U.S. adults can add Bitcoin, Ethereum, and Litecoin to their retirement portfolios under the product if Fidelity is offering these services in the state they reside in. The firm is offering tax-free (Roth) and tax-deferred (traditional and rollover) IRA accounts to its customers. While there are no fees to open or maintain an IRA or crypto custody with Fidelity, it will charge a spread of 1% on the execution price of crypto buy and sell transactions. Fidelity Digital Assets, a a subsidiary of Fidelity Investments, is claiming to offer institutional-level crypto custody services to the customers. It holds the majority of its crypto assets in 'highly secure' cold storage, the firm claims on the website. Cold storage is the practice of storing a crypto wallet or keys offline, i.e., away from the internet, to protect the assets from hacks, exploits, or other vulnerabilities typically associated with online storage. Fidelity Investments, one of the world's largest asset managers, already offers crypto exchange-traded funds (ETFs). Launched in 2024, its spot Bitcoin ETF is worth $16.65 billion, and its spot Ethereum ETF is worth $762.7 million as of Apr. 1, as per SoSoValue. On March 11, it requested the regulator to permit the latter to stake its Ether holdings. The asset manager also applied to list a spot Solana ETF on March 25. As reported on March 26, the firm is testing a stablecoin too, though it does not have any plans for launch. Sign in to access your portfolio
Yahoo
02-04-2025
- Business
- Yahoo
Fidelity Lets Investors Directly Invest in Crypto Through New IRA Plan
Fidelity Investments rolled out an IRA plan that invests directly in crypto on Wednesday, giving investors another method for tapping this asset class. The brokerage firm offers bitcoin (BTC), ethereum (ETH) and Litecoin (LTC) to any U.S. citizen over the age of 18 in eligible states. The assets are custodied by Fidelity Digital Assets and held in a cold wallet. The crypto IRA product has no fees, and customers can invest in a Roth IRA, traditional IRA or rollover IRA, according to Fidelity's website. The new product comes as financial advisors are increasingly offering crypto to their clients. A survey by TMX Vetta Fi recently showed that 57% of advisors plan on increasing their allocations into crypto ETFs, although their biggest focus is in crypto equity ETFs. 'Fidelity is committed to offering investment products and solutions to meet the changing needs and interests of our customers, accompanied by education and support,' a spokesperson told CoinDesk. Clients of the brokerage firm have increasingly voiced interest in a tax-advantaged way to trade and hold crypto, a person familiar with the matter, said. Fidelity already offers a number of crypto exchange-traded funds, which let investors track the prices of digital assets without directly investing in them. The company recently filed to list a Solana ETF on the Cboe Exchange. UPDATE (April 2, 16:15 UTC): Corrects first paragraph to state that the plan was introduced on Wednesday, not Thursday, and clarifies that assets are custodied by Fidelity Digital Assets.
Yahoo
26-02-2025
- Business
- Yahoo
Wall Street-Backed Crypto Exchange EDX Markets Adds 17 New Cryptocurrencies, Including XRP, SOL, Trump Coin
EDX Markets, which is backed by Fidelity Digital Assets, Charles Schwab and Citadel Securities, is adding 17 new cryptocurrencies to its platform, transforming its previously limited selection into a more robust trading platform as it gets ready to absorb growing institutional demand for crypto. 'From the outset, we were designed and built for institutions for exactly what's happening right now,' EDX Markets CEO Tony Acuña-Rohter, told CoinDesk. Acuña-Rohter was appointed CEO of the exchange in December after founder and then-CEO Jamil Nazarali moved to the position of executive chair of the EDX Board. 'We were quite fortunate because FTX happened, crypto winter followed, which gave us two years to build out our technology," said Acuña-Rohter. 'Now we have this company that's ready to absorb all the new entrants from traditional finance.' The newly listed tokens include AAVE (Aave), BCH (Bitcoin Cash), COMP (Compound), LINK (Chainlink), PEPE (Pepecoin), SOL (Solana), UNI (Uniswap), USDC (USD Coin), WIF (Dogwifhat), XRP (Ripple), AVAX (Avalanche), ADA (Cardano), BONK (Bonk Coin), Stellar Lumens (XLM), TRUMP (Trump Coin), XTZ (Tezos), ETC (Ethereum Classic). 'We tend to be very conservative from a regulatory perspective and because we are focused on institutions, we also make sure that we have very clear processes, policies and procedures,' saidAcuña-Rohter. The risk of adding the new tokens decreased significantly with the new administration, which is very focused on providing clarity rather than enforcing actions against crypto companies, he added. The exchange, which is available to institutions only, launched in the U.S. in June 2023 and made headlines with investments from major Wall Street firms Fidelity, Schwab, Paradigm, Sequoia Capital and Citadel, the latter being a former employer of Nazarali. One key difference between EDX Markets and other crypto exchanges is that it doesn't hold customers' digital assets. Instead, users trade through financial intermediaries, much like how transactions occur on traditional stock exchanges like the New York Stock Exchange or Nasdaq. This structure appeals to regulators, EDX CEO Jamil Nazarali explained, as it ensures a clear separation between the exchange and broker-dealer functions. However, EDX Markets kept its asset offerings low for the past two years, sticking to bitcoin (BTC), ethereum (ETH), and litecoin (LTC). By integrating a basket of new assets, the exchange hopes to grow its client base and be a one-stop-shop for clients, globally. The company also plans to introduce a perpetual futures exchange in the second quarter of this year, which will be based out of Singapore but available to jurisdictions all around the world that allow the trading of perpetual futures. This doesn't include the U.S. In the U.S., where the company is based, EDX continues to be focused on expanding its product offerings and onboarding clients from the traditional financial world, said Acuña-Rohter, noting the company is already working with various clients to solidify their plans and map out their integrations in the space. 'This is the moment we've been waiting for,' he said.
