Tom Jessop, head of Fidelity Digital Assets at Fidelity Investments, says the maturation and adoption of digital assets as an asset class will accelerate rapidly in the coming years, suggesting that crypto may have turned a corner in traditional financial circles.
“I think we’ll see adoption continue to accelerate for a variety of reasons,” he said Wednesday afternoon during an interview at MarketWatch and Barron’s Investing in Crypto virtual series of events.
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Jessop said that a backdrop of ultra-low interest rates and an environment stimulated by easy-money policies have contributed to Bitcoin BTCUSD, + 0.30% and other assets that are increasingly viewed as alternatives to assets that are Are viewed rich, boost price to some extent and bonds that offer meager returns.
The S&P 500 Index SPX (+ 0.15%) hit its 18th record high of 2021 on Wednesday and the Dow Jones Industrial Average DJIA (+ 0.05%) wasn’t far from its all-time high like the 10-year Treasury TMUBMUSD10Y (1.668%). yielded around 1.66%.
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“We’re not going to leave this stimulated environment anytime soon,” said Jessop. “I think we have reached a turning point.”
“I think you’ve had the experience that the Bitcoin blockchain has been in operation for about 12 years since the Genesis block in early 2009. And, quite frankly, the pandemic has been a catalyst for institutional adoption, especially Bitcoin and the narrative. or use case related to digital gold, ”said Jessop.
“Especially in an environment where central banks and governments have seen unprecedented monetary and fiscal stimulus in response to the pandemic,” he said.
Fidelity pioneered the integration of digital assets into traditional investment portfolios. As of 2015, the asset manager was one of the first large institutes to deal with Bitcoin.
In 2019, the company created the Digital Asset Unit, which Jessop leads.
Bitcoin was trading at $ 56,500 on Wednesday, up 95% this year.
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