Ben Strack

<div id="highlights-block_629638d78464e" class="highlights">
 <ul>
 <li>Hiring spree to help the business expand its support for assets other than bitcoin, such as ether</li>
 <li>Planned growth follows Fidelity revealing that it would allow individuals to allocate a portion of their retirement savings to bitcoin</li>
 </ul>
 
</div>



Fidelity Investments’ digital asset arm is seeking to double its headcount by the end of the year amid its push to expand its support for assets other than bitcoin.



The company, which currently employs more than 200 people, is seeking to add 210 workers to its force, a Fidelity spokesperson told Blockworks. This includes about 100 client service roles, 50 custody operations jobs and about 30 roles each in execution services and technology building.



The pending hiring spree will help the business expand its support for assets other than bitcoin, such as ether, as well as 24/7 trading, customer service and cloud migration, a representative said. It will also allow the company to better provide services to clients, such as new compliance and tax reporting tools, as the business grows.&nbsp;



Founded in 2018, Fidelity Digital Assets is a subsidiary of Fidelity Investments, which had assets under administration of $11.3 trillion, as of March 31. It has a digital asset custody and trading platform designed for institutions and an asset management business offering crypto investment products.



Some of the upcoming hires will fall under the leadership of Peter Jubber and Chris Tyrer, who have recently transitioned to new roles.



The company revealed internally last week that Jubber, formerly the head of its distinct digital asset management business, now leads enterprise engagement for Fidelity Digital Assets. He will focus on boosting education for associates as the firm seeks to develop a “holistic” digital assets offering.



Tyrer, who has led Fidelity’s international business, now also oversees the digital asset management offering within Fidelity Digital Assets.



“These shifts won’t have any impact on Fidelity Digital Assets’ clients but were made to align with the needs of the business as it continues to grow,” a Fidelity spokesperson said.



Fidelity has made headlines for its crypto initiatives in recent months. In addition to <a href="https://cms.blockworks.co/fidelity-launches-metaverse-experience-in-tandem-with-new-etfs/" target="_blank" rel="noreferrer noopener">debuting</a> a metaverse experience and two crypto-related ETFs, the company <a href="https://cms.blockworks.co/fidelity-delves-deeper-into-crypto-by-allowing-bitcoin-in-401ks/" target="_blank" rel="noreferrer noopener">announced last month</a> that it would allow individuals to allocate a portion of their retirement savings to bitcoin through its 401(k) platform.



Sen. Elizabeth Warren, D-Mass., and Sen. Tina Smith, D-Minn., wrote a letter to Fidelity CEO Abigail Johnson, calling crypt investments “a risky and speculative gamble.”&nbsp;



Fidelity privately responded to the senators by their recommended deadline of May 18 to address some of their concerns, a spokesperson told Blockworks.



“The [Digital Asset Account] offering features several institutional consumer safeguards including but not limited to, excessive trading oversight, investing limits, transparency, market-leading education, and cyber-security features,” the representative said. “Fidelity looks forward to continuing the dialogue on this exciting offering with federal regulators and policymakers consistent with our approach to many new services we offer our customers.”



Fidelity Digital Assets’ efforts to double the company’s headcount come after Tom Jessop, president of Fidelity Digital Assets, said in an interview with Bloomberg last July that the company <a href="https://cms.blockworks.co/fidelitys-digital-assets-division-reportedly-plans-to-boost-staff/" target="_blank" rel="noreferrer noopener">was hoping to add 100 people</a> specializing in technology and operations. 



Jessop noted at the time that the company wants to “be ahead of [ether] demand,” and allow crypto trades throughout more of the week.



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Abigail Johnson

Fidelity Digital Assets To Double Headcount by End of Year

Casey Wagner

<div id="highlights-block_613f710b757f0" class="highlights">
 <ul>
 <li>Digital asset investment products are gaining popularity with institutional investors, according to a new survey from Fidelity Digital Assets </li>
 <li>44% of investors said that a bitcoin ETF, which has not been approved by the SEC, would be the most favorable investment </li>
 </ul>
 
</div>



The vast majority — 84% — of American and European institutional investors are interested in investment vehicles with exposure to digital assets, according to<a href="https://www.fidelitydigitalassets.com/articles/digital-asset-study-2021?sf249449858=1" target="_blank" rel="noreferrer noopener"> Fidelity Digital Assets’ 2021 Institutional Investor Digital Assets Study</a>. 



“The interest expressed in both owning digital assets directly or through a variety of investment&nbsp; products is yet another indicator of the maturation of digital asset markets, the diversity of participants and progress in how these investors are viewing digital assets’ role in portfolios,” said Tom Jessop,&nbsp; president of Fidelity Digital Assets, in the report. “We’ve reached an inflection point where many institutions are deepening their commitment to the space and seeking new investment opportunities to express that interest in portfolios – in some cases, looking to incorporate other digital assets in addition to bitcoin.”&nbsp;



While most investors surveyed considered crypto to be an “alternative asset,” nearly a quarter said that digital assets are an independent asset class. In terms of allocation, one third of respondents hold crypto assets directly. Nearly a quarter reported owning bitcoin and one in five investors said they hold ethereum.&nbsp;



With the exception of hedge funds and venture capital funds, in the US, family offices and&nbsp; financial advisors surveyed had the greatest exposure. These two categories increased adoption by 28% and 20%, respectively.&nbsp;



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="557" height="296" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Screen-Shot-2021-09-13-at-11.00.34-AM.png" alt="Fidelity study" class="wp-image-7807" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Screen-Shot-2021-09-13-at-11.00.34-AM.png?w=557 557w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Screen-Shot-2021-09-13-at-11.00.34-AM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Screen-Shot-2021-09-13-at-11.00.34-AM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Screen-Shot-2021-09-13-at-11.00.34-AM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Screen-Shot-2021-09-13-at-11.00.34-AM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Screen-Shot-2021-09-13-at-11.00.34-AM.png?w=80 80w" sizes="auto, (max-width: 557px) 100vw, 557px" /><figcaption>Source: Fidelity Digital Assets’ 2021 Institutional Investor Digital Assets Study.&nbsp;</figcaption></figure></div>



Those surveyed indicated a strong preference for actively-managed and multi-digital asset funds, though one-third expressed interest in both single- and multi-asset&nbsp; products. When presented with potential product structures, 44% of investors surveyed said that a bitcoin exchange-traded fund, which is not yet available in the US, would be the most appealing. More Than 60% of US and European investors surveyed expressed a neutral or positive view of bitcoin ETFs.&nbsp;



“The data continues to show that institutional investors expect the digital assets industry to&nbsp; more closely mirror that of other asset classes – whether that’s multiple product types covering a variety of investment strategies or the ability to access digital asset investments through traditional financial firms,” said Peter Jubber, Managing Director, Fidelity Digital Funds.



Are you a UK or EU reader that cant get enough investor-focused content on digital assets?<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.

Tom Jessop

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