Fidelity Canada To Become The Country’s First Custodian For Bitcoin

Mutual funds are taking significant steps towards adopting Bitcoin (BTC) and helping to pave the way to offer digital assets across the traditional markets.

Fidelity Clearing Canada ULC, a subsidiary of Fidelity Investments, received the green light from the domestic regulators to become the country’s first custodian for the world’s largest cryptocurrency by market capitalization.

The approval was granted by the Investment Industry Regulatory Organization of Canada (IIROC), which cleared the ground for Fidelity Clearing Canada to make its inception into the custody and trading services offering for institutional investors. It covers portfolio managers, exchange-traded funds, pension funds, and mutual funds.

Widespread Adoption Across Traditional Banking Industry

Not only is Fidelity big in countries like the United States, but Canada, as its branch in the North American country, offers services to over 100 domestic investment companies.

“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,” Scott Mackenzie, president of Fidelity Clearing Canada, commented in an interview with The Globe and Mail.

The mutual funds firm had also applied recently for launching two Bitcoin-related funds in Canada – a country known for being the home of the world’s first BTC ETF approved by the Ontario Securities Commission (OSC) in February.

Bullish For Bitcoin?

Fidelity’s maneuver could be seen as another bullish sign for Bitcoin’s prices, as once Mike Novogratz, Galaxy Digital’s CEO, said. He commented that Fidelity allowing its retail clients to buy Bitcoin could be the most bullish factor for BTC.

As of press time, Bitcoin is challenging a demand zone around $58,950, where buyers could pick up steam to again look for a consolidation above the 200-period simple moving average at the H4 chart.

However, if the crypto pierces below $58,000, doors will open for a leg lower towards the $56,000 as the next tough nut to crack, followed by the $54,450 zone. The RSI indicator is hovering around the oversold territory.