• Fidelity Investments has launched its Fidelity Crypto platform, which allows customers to buy and sell bitcoin.
• Customers will not be able to transfer the bitcoin to a self-custody wallet and will instead pay a 1% spread for transactions.
• There has been criticism of the move, with some senators arguing that such an unstable and risky market should not be entered without caution.
Fidelity Investments Launches Bitcoin Platform
Fidelity Investments has opened its Fidelity Crypto platform to the public, allowing customers to buy and sell bitcoin. The platform is available to U.S. citizens over the age of 18 in eligible states. Transactions will incur a 1% spread as opposed to a fee, with the price difference being visible in the client execution price.
No Ability To Self-Custody
Unfortunately, customers are unable to transfer their bitcoin from the platform into a self-custody wallet where they can control their private keys. Fidelity did mention at launch that this ability would come later on, but no details or roadmap have been provided as of yet.
Criticism From Senators
The launch of Fidelity’s Crypto service was met with criticism from Senators who argued against entering such an “unstable” and “risky” market without due caution being taken beforehand. Despite this opposition however, Fidelity decided to go ahead with its plans anyway.
Trust In Institutions
Although Fidelity is seen by many as a highly trusted institution, it’s important that users remember that trusted third parties are security holes when it comes to using Bitcoin so holding one’s own private keys remains paramount for those wishing for sovereign access over their funds.
In conclusion, while it may be welcomed news that customers can now buy and sell Bitcoin through Fidelity Digital Assets, it is still worth noting that self custody remains the only way for users to truly be sovereign when it comes to their funds when using Bitcoin..