Tom Jessop, head of Fidelity Digital Assets at Fidelity Investments, says the maturation and adoption of digital assets as an investment class will continue at a rapid pace in the coming years, signaling that cryptocurrency may have turned a corner in traditional financial circles.
“I think we are still seeing accelerated adoption for a number of reasons,” he said Wednesday afternoon during an interview on MarketWatch and Barron’s Cryptocurrency Investment Series of virtual events.
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Jessop said that the ultra-low interest rate backdrop and the environment fueled by the easy money policy helped fuel the development of bitcoin BTCUSD.
and other assets, which are increasingly viewed as an alternative to assets that are considered highly valued by one criterion or another, and bonds that offer meager returns.
S&P 500 SPX Index,
hit its 18th record high close of 2021 on Wednesday, and the Dow Jones Industrial Average DJIA,
close to the record level of 10-year treasury TMUBMUSD10Y,
yield of about 1.66%.
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“We’re not going to get out of this stimulated environment anytime soon,” Jessop said. “I think we’ve reached a tipping point.”
“I think you have approximately 12 years of experience with the bitcoin blockchain to date since the block was invented in early 2009. And the pandemic, frankly, has become a catalyst for institutional adoption, and specifically bitcoin and storytelling, or a precedent for digital gold, ”Jessop said.
“Particularly in an environment where we are seeing unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic,” he said.
Fidelity has been at the forefront of integrating digital assets into traditional investment portfolios. The Asset Manager was one of the first major institutions to study Bitcoin, starting in 2015.
In 2019, the company created the digital assets division, which is led by Jessop.
Bitcoin traded at $ 56,500 on Wednesday, up 95% this year.
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