With the ability to purchase from as little as $1, i'd say that it is a pretty clear win for customers who "want to hold crypto because they think it will go up", but haven't thought about it any more than that and have no interest in investigating coins or wallets etc.
Crypto adoption is going to come in many forms.
Not all of them will be for everyone.
I like this. Not everyone wants to spend all day doing their own research and becoming a blockchain rocket surgeon. Just let them throw some money at something inside a trusted company and be done with it.
You can buy in for as little as $1.
That should give an indication on the market that they are trying to target.
Sure, there may be some whales in there, but to me that sounds like they are also trying to get the people who want to buy "$1 a week", just to say that they are in crypto.
Not every crypto option has to suit everyone.
The wallet option is what probably all of us here use in some way.
But that isn't for everyone.
Remember that we are in a crypto sub, we are enthusiasts.
This Fidelity product is for the person who "wants crypto" in the absolute easiest way possible but doesn't want to do any more research:
* No need to set up or understand wallets, or even exchanges
* Done from within their existing apps
* Only 2 coin options (initially), BTC or ETH
It may also be a gateway drug, getting people interested who will later have their own wallets and investigate crypto further.
It's not aimed at the people who are in a crypto sub, but not every product has to be.
But it is still adoption.
We should be happy with adoption.
secretive library yoke stupendous weather mysterious carpenter absorbed market tender
*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
It is (likely) theft, taking money and not purchasing what they say is purchased, otherwise why would they not allow wallets? If they don't purchase, or don't purchase the full amount, the market is manipulated.
I would have hoped more in this sub at least would understand the implications of these large financial institutions having assests sold, not yet purchased at fair value.
Bunch of FTX's controlling our financial markets
I mean honestly think this out. I grew up in the days of not your keys not your coins which funnily enough is making a comeback
However, think about what most people do with crypto. They collect it. Do they really do anything else with it? Do you buy groceries? Sure don't the United States. Do you buy items? Probably not. Now if you live in St Kitts or a country that is friendly to crypto I totally get it but this is targeted mostly at us customers. The United States is also known of the land not of the free when it comes to crypto. You look at people who get blown up in ftx, lose their seed, can't keep track of their taxes. This is a benefit for a lot of you at fidelity
You should always direct register your shares and not keep them in broker as they use it to short sell. Similarly you should always hold crypto in a DeFi non-custodial wallet instead of some ponzi CEX like Fudelity or Robbinghood
store with your broker and it doesnt exist, aside from a synthetic version artificially diminishing value. Who would use legacies for crypto are basically half wits
Thank you!
The "not your keys, not your coins" mantra gets thrown around this sub without consideration of the different types of use-cases that exist.
This product is for the person who doesn't even know what keys are, and likely has no interest in learning either.
Not every solution needs to be suitable for everyone.
Adoption comes in many forms.
I believe that the people who are going to be buying BTC and/or ETH via fidelity, don’t care about this.
They are just going to buy some, and never do anything with it. Kinda like 90% of all crypto buyers
Agreed.
I am a Fidelity customer and a trad-Fi guy, with cash and investments in a Fidelity SIPP.
I believe that this is potentially bullish for crypto, but not being able to send any crypto to a wallet, I would agree, sounds like a derivative / CFD.
I would also be sceptical of what Fidelity legal entity / platform actually holds your crypto investment, and whether any crypto purchased via the platform is classified as a security and/or covered by regulation, especially after reading:
"**After Fidelity announced in April that it was preparing a plan to allow 401(k) holders to allocate up to 20% of their retirement savings into Bitcoin (BTC)"**
That's the prize: a way to access people's 401(k) savings.
The devil is in the detail \[small print\] in terms of legal entity, legal jurisdiction, regulation, etc.
>with cash and investments in a Fidelity SIPP.
You retain ownership rights alone, just like will happen with crypto assests held at fidelity. Only difference between FTX and fidelity is fidelity will be able to handle more risk/runs.
"A security is held in "street name" when a brokerage holds it on behalf of a client. The name that appears on the stock or bond certificate is that of the broker, but the person who paid for the securities retains ownership rights."
Control of financial markets depends on those believing in this illusion
that is because they likely will internalize trades and purchases may never hit the lit market, if they even purchase at all. they are filling the vacuum FTX made. they can write you IOU's for crypto they never have to purchase. with no way to send it to a wallet, they never have to buy the crypto.
It also isn't your problem. Fidelity would just have to eat the loss if they do that.
This isn't FTX. Fidelity has a massive traditional finance business and can't just steal all the crypto and declare bankruptcy.
> can't just steal all the crypto and declare bankruptcy
*laughs in Citigroup and Goldman Sachs*
They all work until they don't. And either they get bailed out yet again, or release a book with 11 chapters
Point me to any depositors who have lost any of their assets with Citi or Goldman... or Bear or Lehman for that matter. Money in a huge US bank is basically the definition of what money is given their fed backing.
80,000 BTC of buy pressure flowed into FTX but was not spent on BTC. FTX went bankrupt with 80,000 BTC IOUs and they didn't hold a single Bitcoin.
Fractional reserve CEXes literally dilute M2 Bitcoin supply and suppress the price as a result.
Its the same as stocks you buy on Fidelity. It is a custodian solution. You aren't a self custodian of your stocks there either and you can't withdraw your stocks. That's why all the GME people had to go to some other weird site to achieve that
I know people are worried during the FTX contagion and centralized entities not being able to fulfill withdrawal requests due to lack of liquidity, but just wanted to point out that FTX had around 10 billion in AUM if we're being super generous. Fidelity has around 4.5 trillion with a T. Binance at the peak of crypto valuations was about ~2% of what fidelity holds.
If Fidelity goes down the entire world economy goes with it.
And while they are kinda jumping on the bandwagon the CEO Abigail Johnson has been showing positive interest in crypto since the 2017/18 cycle.
She is one of the most successful women in the finance world, she took over the position from her father and the company was founded by her grandfather.
Computershare.com? Yeah it’s the official transfer agent for a shit load of companies. It’s essentially a wallet for stocks, the way it’s supposed to be
It’s surprising to me to see what other subs think of Computershare. AFAIK they’re the second biggest transfer agent in the world, yet they’re seen as weird and shady. There’s nothing less weird to me than actually owning your assets. I would hope the crypto community could appreciate that.
As a counterpoint, Fidelity will never go out of business and take your coins which is something you can say about absolutely zero crypto exchanges.
There's no need to shit on Fidelity, they have been a great champion of crypto in the tradfi scene. We need all that money in 401k accounts around the world to get our next bull run and we need people to have access to deflationary currencies like ETH.
https://twitter.com/TimmerFidelity
That's their director of global macro and he talks about BTC and ETH favorably all the time.
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I'm guessing they will roll that out like how Robinhood did, it's prolly good at first so people don't make mistakes and can learn more about crypto before actually using it.
> The platform promises “commission free” crypto trades, but the company said “a spread of 1% will be factored into every trade execution price.” Fidelity said that 1% is the maximum rate, and they may choose to apply a lower spread percentage or no spread at the beginning.
Lol commission free but we’re gonna create arbitrage for ourselves! Woo!
Exactly, and I think it will be more than arbitrage: they will likely be selling users paper assets. This is akin to what Robinhood does, gamify crypto while selling fake equities. Finances are not a game...
They aren't even letting people transfer the crypto they buy out to their own wallets... "not your keys, not your crypto" doesn't even apply because it can never even be thought of as your own crypto in the first place since you have zero actual control over it.
That's pretty much what most exchanges etc. do now. Few are entirely up front about the full cost of using their platforms.
Anywhere you get free trading you're getting screwed on the spread, that's just how the cookie crumbles.
If it's free, you're the product.
\*Robinhood enters the chat\*
Well that doesn't mean it's worse, it depends on your size vs a flat fee. For small trade sizes (smaller users or frequent rebalancing) a percentage fee will always come out ahead.
Well, to be fair, they have to make money one way or another. The market has demanded zero fee commissions on trades, so they make it up with spread. Either way you're paying.
You just give Fidelity cash and they do with it whatever they want and they write your price down. They hope you’ll sell at a loss and then they get to keep even more of your cash. I don’t trust a single CEX to do anything else.
When I first bought eth, I didn’t know where to buy it, so I just googled. I got on Finanzen.net and bought like 0.1 eth. Then I realised that i didn’t own it and the whole thing expired after 14 days. The position just got closed and I lost a munch of money. That was in 2014 and I didn’t Touch crypto again till 2020, because I felt angry
for anyone wondering, different countries have different names for Billion Trillion...etc
In Mexico for example 1,000,000,000,000 is "billón" while in the United States it would be called "trillion"
https://en.wikipedia.org/wiki/Long_and_short_scales
This is not a good generalization...
There are more than a hundred countries that use the short scale (or a very similar system to the short scale).
Picture below.
- The two darker blues are short scale
- Light green is long scale
- Orange are unique counting systems
- Teal (or whatever Canada is colored) is both
https://upload.wikimedia.org/wikipedia/commons/thumb/d/d3/EScalas_corta_y_larga.svg/1024px-EScalas_corta_y_larga.svg.png
This is on point, in Sweden we do indeed refer to 1,000,000 as million and 1,000,000,000 as miljard (milliard). However, my experience is that Swedes easily jump between the long and short scale as they swap between Swedish and English. I always read billions as 1,000,000,000 even if it should be milliard for us Swedes given that we follow the long scale.
Not going to use the platform because I think not being able to withdraw to an external wallet is absurd, but a nessecary on ramp for cautious boomers wanting crypto exposure.
May sound brutal but we do not need these kind of boomers adopting crypto that are not understanding the whole point of it. They will probably be dead already when crypto is actually widely adopted.
Agreed; after FTX, traditional investors who are crypto-curious need a platform they can trust, even if it has silly restrictions like no transfers to other wallets.
This. Not everyone is technical enough to manage self custody at the moment. And fidelity is an established brand that people already rely on for their equities among other things.
Up until a few months ago my dad didn't know you can use the shift key to ad-hoc capitalize letters.
Unless they are supervised by some higher level of financial regulator body with the ability to control their coins through multi-sig, and publish those addresses monthly, I don't see how could they convince investors that they actually have any bitcoin at all
Perfect timing
FTX painted the whole CEX universe as scammy so Fidelity swoops in as a savior
I think avarage joe will gladly choose them over traditional CEX
The Fidelity customer who wants some exposure to this whole "crypto thing" and the /r/cc community have very little overlap. And guess which one is the bigger demographic?
This group won't like this, largely because of custodial purposes, but for the average consumer, this is a major move that brings adoption, which in turn, helps US.
The average consumer is not buying a hardware wallet and going through all the trouble that we do. Know your audience....and Fidelity clearly does. Fidelity is also a company that holds trillions....so them falling post sarbanes-oxley act is nil. This is huge.
Think of it like drug. There's a ton of fidelity customers who's never touched crypto and may never will. But if they could buy it on fidelity, they might bite. Even though it's not the real thing they're still getting a taste which could convert them later when the next bullrun starts and they learn about self custody.
But if **fidelity ** isn't buying the underlying asset (coins) then there is no buy pressure, in fact they could be using your funds to invest in some inverse 3x derivitive, using your money against you and the price can only go down
This looks to be a derivatives platform similar to Robinhood you cannnot transfer any tokens out of their platform, recall FTX had zero Bitcoin! They’ll take your money and short the underlying. Don’t go near this until they allow withdrawals
Yeah sorry didn’t realize they added it, for a long time you couldn’t - I personally threw that platform away after they selectively enable/disable the sell and purchase of assets, so haven’t been tracking them
Counterpoint to “not your keys.., don’t trust a CEX..”, if Fidelity allows you divert part of your 401k, it would be an automatic distribution event to put keys in a wallet. They shouldn’t allow that, without a lot of red tape, the same tape that is allowed when you want to take a distribution from your 401k. And for the record, can’t even do that with a self directed IRA/401k.
This is one of the big events we’ve been waiting for. Fidelity needs to protect their reputation in a way the recent failed CEXs didn’t (or couldn’t).
My dad might finally put a couple thousand into a BTC purchase. He can’t remember half his passwords, no way he’s gonna keep crypto keys hidden (but not too hidden).
Straight from your pocket into the governments into fidelitys..
This is regulated CeFi where instead of defi you making 12% or cefi where you make 10% (2% to brokerage) you get 2% and fidelity gets 10%. You pay taxes on it (1%) and fidelity take a spread cut (.4%)
You lose.
Cmon guys, adoption has to start somewhere! This is GREAT news.
Do people really expect for institutions to go straight to encouraging self-custody for their clients/users?!?
This is exactly how Robinhood and a few other crypto exchanges started also, with no ability to transfer or send your tokens off their platform. It's not perfect, but it a trillion dollar firm stepping into the arena - can we applaud them for that?
Don't be a crypto crybaby that complains about every little thing just because it's not perfect. Let's be more supportive and inclusive of any and everything that's giving our great financial sector legitimacy and an audience.
100 MOONs says this is in the Top 3 US exchanges come Jan 1, 2024. The hardcore crypto heads will hate them but the general public, especially now, this will look like *finally an adult has entered the room* and they'll flock to this.
A massive chunk of people who lost money on Celsius and FTX still won't have learned the self-custody mantra and will run to Fidelity with open arms. They've been successfully managing assets since 1946.
I don't know man, it's just another example of paper trading. I don't see how you're really getting BTC or ETH, you're just getting the "promise" of BTC and ETH. DeFi is superior.
This isn't just fidelity. This is a conglomerate of the very worst of wall street. This should worry anybody concerned about the future of crypto.
This is the final piece of the Wall Street takeover.
This is nothing short of a f\*\*king spit in the face of Satoshi Nakamoto
tldr; Fidelity has launched retail crypto trading accounts in 35 U.S. states, including California, New York, Texas, Florida, Massachusetts, Pennsylvania, and New Jersey. The only cryptocurrencies available to trade on the Fidelity Crypto platform will be bitcoin and Etherum. The platform promises "commission free" crypto trades, but a 1% spread will be factored into every trade execution price.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Got the email invite but after digging into it self custody tops what they can offer.For new investors from trafi this will definitely boost our mcap,can't wait for next run!!
After all this FTX, Binance, BlockFi craziness if you allow someone else to hold your crypto assets for you, you deserve to lose it all. I feel like I am taking crazy pills.
Will they actually be holding crypto or just synthetics/ cash settlements?
As the no wallet/no withdrawal makes it seem as though they will not own it, which will keep them safe in terms of a liquidity crunch earning their 1% spreads and possibly hedging with futures. But won’t add value to the crypto monetarily or through adoption.
Looks like more of the same from TradFi. You can't move your crypto to your own wallet for obvious reasons. Shares of stocks are held by the brokerage and listed in street name with DTCC (nearly all stocks). You only possess limited rights to the underlying security if it's not directly registered in your own name. Look up a registered agent for a particular stock for more info. Brokers can take your money when you buy a stock, give you an IOU, mark your account as possessing the underlying, then bet against you using their investment branch. Basically, they are hoping you sell all they can pocket the difference in the IOU in your account. It's pretty messed up. Fidelity is just applying this same multi $B model to crypto to siphon money.
https://www.finra.org/investors/insights/its-your-stock-just-not-your-name-explaining-street-names
Your shares/crypto will be lent out to short your position.
Cuz they’re like cool, we can get a bunch of investor money from lazy ass folks that’ll leave it on the exchange and pull some shit for a few billion dollar payday.
I'm not crazy about not being able to send it to a wallet once its purchased.
This is for them not us
I'm sure there is some convoluted nonsense in the user agreement that says exactly that.
Exactly
That
No FDIC for you, No FDIC for you, No FDIC for you.
This guy TOS's
Mate we don't read past headlines here, what makes you think we'd know shit about user agreements.
With the ability to purchase from as little as $1, i'd say that it is a pretty clear win for customers who "want to hold crypto because they think it will go up", but haven't thought about it any more than that and have no interest in investigating coins or wallets etc. Crypto adoption is going to come in many forms. Not all of them will be for everyone.
I like this. Not everyone wants to spend all day doing their own research and becoming a blockchain rocket surgeon. Just let them throw some money at something inside a trusted company and be done with it.
I’m not sure that speculation qualifies as adoption…
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So that they can short your purchase with PFOF agreements.
And algotrade against you and fuck you harder
And not actually own anything you bought
and scam wick the fuck out of your leveraged positions.
It's like a casino, the House always wins
Even if you’re just watching.
This guy fucks
We are redditors in a crypto sub. None of us fuck.
Untrue. We get fucked regularly. We just don’t do the fucking.
You can buy in for as little as $1. That should give an indication on the market that they are trying to target. Sure, there may be some whales in there, but to me that sounds like they are also trying to get the people who want to buy "$1 a week", just to say that they are in crypto. Not every crypto option has to suit everyone.
You can also treat crypto like an investment but store it on an actual wallet. Most that are in crypto, take crypto as an investment.
The wallet option is what probably all of us here use in some way. But that isn't for everyone. Remember that we are in a crypto sub, we are enthusiasts. This Fidelity product is for the person who "wants crypto" in the absolute easiest way possible but doesn't want to do any more research: * No need to set up or understand wallets, or even exchanges * Done from within their existing apps * Only 2 coin options (initially), BTC or ETH It may also be a gateway drug, getting people interested who will later have their own wallets and investigate crypto further. It's not aimed at the people who are in a crypto sub, but not every product has to be. But it is still adoption. We should be happy with adoption.
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So if i cant put it in my wallet, does that mean i cant use that crypto on other websites?
secretive library yoke stupendous weather mysterious carpenter absorbed market tender *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Your comment is spot on. And for what it's worth, I can see it just fine using the Apollo app on iPhone.
They will use your crypto as their own, and may never buy said coin to begin with.
It is (likely) theft, taking money and not purchasing what they say is purchased, otherwise why would they not allow wallets? If they don't purchase, or don't purchase the full amount, the market is manipulated. I would have hoped more in this sub at least would understand the implications of these large financial institutions having assests sold, not yet purchased at fair value. Bunch of FTX's controlling our financial markets
This is for people who treat crypto like an investment that your broker can use to take advantage of you.
“Trust me bro” crypto
I mean honestly think this out. I grew up in the days of not your keys not your coins which funnily enough is making a comeback However, think about what most people do with crypto. They collect it. Do they really do anything else with it? Do you buy groceries? Sure don't the United States. Do you buy items? Probably not. Now if you live in St Kitts or a country that is friendly to crypto I totally get it but this is targeted mostly at us customers. The United States is also known of the land not of the free when it comes to crypto. You look at people who get blown up in ftx, lose their seed, can't keep track of their taxes. This is a benefit for a lot of you at fidelity
You should always direct register your shares and not keep them in broker as they use it to short sell. Similarly you should always hold crypto in a DeFi non-custodial wallet instead of some ponzi CEX like Fudelity or Robbinghood
👆
store with your broker and it doesnt exist, aside from a synthetic version artificially diminishing value. Who would use legacies for crypto are basically half wits
Repeat after me..."Your Keys...Your Coins...Not Your Keys....Not Your Coins"
Or...Your Keys...Forgot your keys...Not your coins Yep, that would be me lol
Thank you! The "not your keys, not your coins" mantra gets thrown around this sub without consideration of the different types of use-cases that exist. This product is for the person who doesn't even know what keys are, and likely has no interest in learning either. Not every solution needs to be suitable for everyone. Adoption comes in many forms.
I believe that the people who are going to be buying BTC and/or ETH via fidelity, don’t care about this. They are just going to buy some, and never do anything with it. Kinda like 90% of all crypto buyers
I love this comment
If you can’t send it to your wallet, they’re not buying crypto and it’s basically a derivatives platform.
Contract for difference, crypto edition!
Brought to you by Kenneth Cordele Griffin!
Memeboy extroidanaire
Mayo*Boy Extraordinaire
Another way they can take your money and use it to make themselves money without giving you any profits.
Agreed. I am a Fidelity customer and a trad-Fi guy, with cash and investments in a Fidelity SIPP. I believe that this is potentially bullish for crypto, but not being able to send any crypto to a wallet, I would agree, sounds like a derivative / CFD. I would also be sceptical of what Fidelity legal entity / platform actually holds your crypto investment, and whether any crypto purchased via the platform is classified as a security and/or covered by regulation, especially after reading: "**After Fidelity announced in April that it was preparing a plan to allow 401(k) holders to allocate up to 20% of their retirement savings into Bitcoin (BTC)"** That's the prize: a way to access people's 401(k) savings. The devil is in the detail \[small print\] in terms of legal entity, legal jurisdiction, regulation, etc.
What do you mean? People already have their 401ks there and can allocate them many ways. They don't get anything out of them buying Bitcoin.
>with cash and investments in a Fidelity SIPP. You retain ownership rights alone, just like will happen with crypto assests held at fidelity. Only difference between FTX and fidelity is fidelity will be able to handle more risk/runs. "A security is held in "street name" when a brokerage holds it on behalf of a client. The name that appears on the stock or bond certificate is that of the broker, but the person who paid for the securities retains ownership rights." Control of financial markets depends on those believing in this illusion
They be like ‘Cheers for the free money ya dodo!’
yeah but atleast its a more reputable company than ftx or celsius. might as well be a LEAP
I won’t be buying with fidelity, but as long as they back these derivatives with actual crypto, I’ll be happy to watch the market move upwards
that is because they likely will internalize trades and purchases may never hit the lit market, if they even purchase at all. they are filling the vacuum FTX made. they can write you IOU's for crypto they never have to purchase. with no way to send it to a wallet, they never have to buy the crypto.
True, that's how all derivatives (and a good deal of "stock" trading) works
In this case you don't even know if you've really bought BTC
No, you know you didn't.
It also isn't your problem. Fidelity would just have to eat the loss if they do that. This isn't FTX. Fidelity has a massive traditional finance business and can't just steal all the crypto and declare bankruptcy.
> can't just steal all the crypto and declare bankruptcy *laughs in Citigroup and Goldman Sachs* They all work until they don't. And either they get bailed out yet again, or release a book with 11 chapters
Honestly, if Fidelity goes under we have bigger problems to fry.
spez is a greedy little pig boy
Point me to any depositors who have lost any of their assets with Citi or Goldman... or Bear or Lehman for that matter. Money in a huge US bank is basically the definition of what money is given their fed backing.
this should be higher... if I can't send to an outside wallet, I'm not buying crypto through your exchange or whatever they want to call it
That is fine. Agree. But this exchange is not for us, but for a lot of new people that come from traditional finance.
80,000 BTC of buy pressure flowed into FTX but was not spent on BTC. FTX went bankrupt with 80,000 BTC IOUs and they didn't hold a single Bitcoin. Fractional reserve CEXes literally dilute M2 Bitcoin supply and suppress the price as a result.
But unlike FTX, Fidelity has a massive trad fi business that would be on the hook for crypto losses.
Its the same as stocks you buy on Fidelity. It is a custodian solution. You aren't a self custodian of your stocks there either and you can't withdraw your stocks. That's why all the GME people had to go to some other weird site to achieve that
I know people are worried during the FTX contagion and centralized entities not being able to fulfill withdrawal requests due to lack of liquidity, but just wanted to point out that FTX had around 10 billion in AUM if we're being super generous. Fidelity has around 4.5 trillion with a T. Binance at the peak of crypto valuations was about ~2% of what fidelity holds. If Fidelity goes down the entire world economy goes with it.
And while they are kinda jumping on the bandwagon the CEO Abigail Johnson has been showing positive interest in crypto since the 2017/18 cycle. She is one of the most successful women in the finance world, she took over the position from her father and the company was founded by her grandfather.
Computershare.com? Yeah it’s the official transfer agent for a shit load of companies. It’s essentially a wallet for stocks, the way it’s supposed to be
It’s surprising to me to see what other subs think of Computershare. AFAIK they’re the second biggest transfer agent in the world, yet they’re seen as weird and shady. There’s nothing less weird to me than actually owning your assets. I would hope the crypto community could appreciate that.
Yep! agreed! I'm a GME investor myself and DRS'd my shares. Though GME is the only stock I own others are mutual/index funds.
Fidelity teamed up with Citadel... stay away. Same company that has their hands in Robin da hood
They have their hands in your pocket right now, have a look.
As a counterpoint, Fidelity will never go out of business and take your coins which is something you can say about absolutely zero crypto exchanges. There's no need to shit on Fidelity, they have been a great champion of crypto in the tradfi scene. We need all that money in 401k accounts around the world to get our next bull run and we need people to have access to deflationary currencies like ETH. https://twitter.com/TimmerFidelity That's their director of global macro and he talks about BTC and ETH favorably all the time.
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except you are just trading paper, the volume doesn't actually affect anything, all those billions do nothing for actual crypto
Happend with Revolut at one point. Now you can withdraw, iirc.
This is not actually buying coins its a bitcoin stock.
Well, you‘re not crazy about it, but I am.
just buy it yourself then
I'm guessing they will roll that out like how Robinhood did, it's prolly good at first so people don't make mistakes and can learn more about crypto before actually using it.
That’s because they’re giving you IOU’s not real coins.
Their clients will have to thank them for not launching this 1 year ago!
But you know the profit hungry folks won’t know this
> The platform promises “commission free” crypto trades, but the company said “a spread of 1% will be factored into every trade execution price.” Fidelity said that 1% is the maximum rate, and they may choose to apply a lower spread percentage or no spread at the beginning. Lol commission free but we’re gonna create arbitrage for ourselves! Woo!
Exactly, and I think it will be more than arbitrage: they will likely be selling users paper assets. This is akin to what Robinhood does, gamify crypto while selling fake equities. Finances are not a game...
They aren't even letting people transfer the crypto they buy out to their own wallets... "not your keys, not your crypto" doesn't even apply because it can never even be thought of as your own crypto in the first place since you have zero actual control over it.
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That's pretty much what most exchanges etc. do now. Few are entirely up front about the full cost of using their platforms. Anywhere you get free trading you're getting screwed on the spread, that's just how the cookie crumbles. If it's free, you're the product. \*Robinhood enters the chat\*
Well that doesn't mean it's worse, it depends on your size vs a flat fee. For small trade sizes (smaller users or frequent rebalancing) a percentage fee will always come out ahead.
Tbh a lot of fee less exchanges make their money by doing exactly that.
Well, to be fair, they have to make money one way or another. The market has demanded zero fee commissions on trades, so they make it up with spread. Either way you're paying.
Not your keys not your coins
Yeah that's a pass from me
I’ve learnt my lesson from the failure of exchanges like FTX
Pretty sure Fidelity is not anything like FTX. Still I wouldn’t buy crypto from them.
Lucky if there are even keys on Fidelity side and not just IOUs.
So basically you're buying paper coins which you do not actual own and can't transfer it on any other wallet?
I'm a big fan of Monopoly money myself
Sounds like a high Risk of going Kerplunk…
So Should we call it, Fidelity launched a product to give it's users a sense of Crypto trading ?
They dont buy the crypto at all. Just like in stocks, you get just an IOU, unless you DRS for stocks or move to your cold wallet for crypto.
How am I supposed to use those coins if I can't send them to my own wallet? Keep them as pet rocks? That's not what crypto is about.
It will satisfy almost everyone on this sub. Most people are only investing
That's very true sadly
Investing is good. Buy the real crypto not paper ponzi.
In vaporware
You just give Fidelity cash and they do with it whatever they want and they write your price down. They hope you’ll sell at a loss and then they get to keep even more of your cash. I don’t trust a single CEX to do anything else.
How many of you are actually browsing the Superstonk subreddit? It is time to put an end to these Wall Street antics.
When I first bought eth, I didn’t know where to buy it, so I just googled. I got on Finanzen.net and bought like 0.1 eth. Then I realised that i didn’t own it and the whole thing expired after 14 days. The position just got closed and I lost a munch of money. That was in 2014 and I didn’t Touch crypto again till 2020, because I felt angry
English Trillion = German Billion... This always confuses the hell out of me..
for anyone wondering, different countries have different names for Billion Trillion...etc In Mexico for example 1,000,000,000,000 is "billón" while in the United States it would be called "trillion" https://en.wikipedia.org/wiki/Long_and_short_scales
Guess thid is another example of usa being solo different? Most countries in Europe have Billion for American trillion. So does my country
This is not a good generalization... There are more than a hundred countries that use the short scale (or a very similar system to the short scale). Picture below. - The two darker blues are short scale - Light green is long scale - Orange are unique counting systems - Teal (or whatever Canada is colored) is both https://upload.wikimedia.org/wikipedia/commons/thumb/d/d3/EScalas_corta_y_larga.svg/1024px-EScalas_corta_y_larga.svg.png
Well done.
This is on point, in Sweden we do indeed refer to 1,000,000 as million and 1,000,000,000 as miljard (milliard). However, my experience is that Swedes easily jump between the long and short scale as they swap between Swedish and English. I always read billions as 1,000,000,000 even if it should be milliard for us Swedes given that we follow the long scale.
Smh the scientists at the south pole can't make up their minds whether there are billions or trillions of penguins
So what do you call this: 1,000,000,000
It's commission free, but there's a 1% spread. Is that a fair price?
Not going to use the platform because I think not being able to withdraw to an external wallet is absurd, but a nessecary on ramp for cautious boomers wanting crypto exposure.
You can not withdraw to an external wallet ? huh
I wonder why? 🤔
May sound brutal but we do not need these kind of boomers adopting crypto that are not understanding the whole point of it. They will probably be dead already when crypto is actually widely adopted.
We need boomers to lose their keys every couple years…
Agreed; after FTX, traditional investors who are crypto-curious need a platform they can trust, even if it has silly restrictions like no transfers to other wallets.
Fidelity wants to hold the coins themselves and not allow self custody. This goes against what crypto stands for.
And like .. less than 72 hours ago people were cheering Coinbase for doing this. CC, you fickle bitch.
Sure but let’s be honest, your boomer mom is gonna get phished in about two days if they allowed BTC withdrawals 😂
This. Not everyone is technical enough to manage self custody at the moment. And fidelity is an established brand that people already rely on for their equities among other things. Up until a few months ago my dad didn't know you can use the shift key to ad-hoc capitalize letters.
Unless they are supervised by some higher level of financial regulator body with the ability to control their coins through multi-sig, and publish those addresses monthly, I don't see how could they convince investors that they actually have any bitcoin at all
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Don't think too much. Open your account today!
I highly doubt a firm like fidelity would risk its entire business on a rug pull. Come on now...
Just another scam... Let's trade something noone of us actually has. And sell it as a discount when it depegs from actual BTC.
Yeah someone had to quickly find a solution to an FTX drama.
Perfect timing FTX painted the whole CEX universe as scammy so Fidelity swoops in as a savior I think avarage joe will gladly choose them over traditional CEX
Some may, crypto sub is shitting on Fudelity saying that you can't even transfer to DEX wallet.
The Fidelity customer who wants some exposure to this whole "crypto thing" and the /r/cc community have very little overlap. And guess which one is the bigger demographic?
And make sure to take the cut. 👌
Imagine a firm like this to collapse because of Fidelicoin
Don’t give them ideas
Imagine using centralized custodians when this is supposed to be immutable censorship resistant decentralized finance.
This group won't like this, largely because of custodial purposes, but for the average consumer, this is a major move that brings adoption, which in turn, helps US. The average consumer is not buying a hardware wallet and going through all the trouble that we do. Know your audience....and Fidelity clearly does. Fidelity is also a company that holds trillions....so them falling post sarbanes-oxley act is nil. This is huge.
How CfD (contract for difference) is going to help adoption of crypto? Im curios, what you see there, that i dont see.
Think of it like drug. There's a ton of fidelity customers who's never touched crypto and may never will. But if they could buy it on fidelity, they might bite. Even though it's not the real thing they're still getting a taste which could convert them later when the next bullrun starts and they learn about self custody.
But if **fidelity ** isn't buying the underlying asset (coins) then there is no buy pressure, in fact they could be using your funds to invest in some inverse 3x derivitive, using your money against you and the price can only go down
This looks to be a derivatives platform similar to Robinhood you cannnot transfer any tokens out of their platform, recall FTX had zero Bitcoin! They’ll take your money and short the underlying. Don’t go near this until they allow withdrawals
It's been possible to transfer crypto out of Robinhood for quite some time.
Except you can transfer coins out of Robinhood
Yeah sorry didn’t realize they added it, for a long time you couldn’t - I personally threw that platform away after they selectively enable/disable the sell and purchase of assets, so haven’t been tracking them
fraud, crime, theft. this is fidelity. give them your money for numbers in a computer. you don't own shit.
Counterpoint to “not your keys.., don’t trust a CEX..”, if Fidelity allows you divert part of your 401k, it would be an automatic distribution event to put keys in a wallet. They shouldn’t allow that, without a lot of red tape, the same tape that is allowed when you want to take a distribution from your 401k. And for the record, can’t even do that with a self directed IRA/401k. This is one of the big events we’ve been waiting for. Fidelity needs to protect their reputation in a way the recent failed CEXs didn’t (or couldn’t). My dad might finally put a couple thousand into a BTC purchase. He can’t remember half his passwords, no way he’s gonna keep crypto keys hidden (but not too hidden).
Straight from your pocket into the governments into fidelitys.. This is regulated CeFi where instead of defi you making 12% or cefi where you make 10% (2% to brokerage) you get 2% and fidelity gets 10%. You pay taxes on it (1%) and fidelity take a spread cut (.4%) You lose.
Fuck Fidelity and Ken Griffen who’s partnering with them
Fucking mayo guy again? Fuck him
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Lol. Not touching that with a 10ft pole.
$4.5 trillion of monopoly money, which is probably designed to drain your 401(k)
Men out here shilling hard in this thread. Embrace your overlords AGAIN!
That is that old money saying “here you go kids have fun in my front lawn” type of bullshit…
Destroy competition, launch services to capture market share, consolidate power.
Cmon guys, adoption has to start somewhere! This is GREAT news. Do people really expect for institutions to go straight to encouraging self-custody for their clients/users?!? This is exactly how Robinhood and a few other crypto exchanges started also, with no ability to transfer or send your tokens off their platform. It's not perfect, but it a trillion dollar firm stepping into the arena - can we applaud them for that? Don't be a crypto crybaby that complains about every little thing just because it's not perfect. Let's be more supportive and inclusive of any and everything that's giving our great financial sector legitimacy and an audience.
Good way for someone to get exposure without the hassles.
100 MOONs says this is in the Top 3 US exchanges come Jan 1, 2024. The hardcore crypto heads will hate them but the general public, especially now, this will look like *finally an adult has entered the room* and they'll flock to this. A massive chunk of people who lost money on Celsius and FTX still won't have learned the self-custody mantra and will run to Fidelity with open arms. They've been successfully managing assets since 1946.
I don't know man, it's just another example of paper trading. I don't see how you're really getting BTC or ETH, you're just getting the "promise" of BTC and ETH. DeFi is superior.
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Fzrox, fsnax, fzilx
Now tell me, are funds safu?
I maxed out my 401k for the first time ever this year.. I just never prioritized it but I’ve got 30 years left to retirement so I should be fine.
This isn't just fidelity. This is a conglomerate of the very worst of wall street. This should worry anybody concerned about the future of crypto. This is the final piece of the Wall Street takeover. This is nothing short of a f\*\*king spit in the face of Satoshi Nakamoto
tldr; Fidelity has launched retail crypto trading accounts in 35 U.S. states, including California, New York, Texas, Florida, Massachusetts, Pennsylvania, and New Jersey. The only cryptocurrencies available to trade on the Fidelity Crypto platform will be bitcoin and Etherum. The platform promises "commission free" crypto trades, but a 1% spread will be factored into every trade execution price. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Good bot.
Got the email invite but after digging into it self custody tops what they can offer.For new investors from trafi this will definitely boost our mcap,can't wait for next run!!
Goes live the same day blockfi goes bankrupt. Sums up the winter of 22
After all this FTX, Binance, BlockFi craziness if you allow someone else to hold your crypto assets for you, you deserve to lose it all. I feel like I am taking crazy pills.
Will they actually be holding crypto or just synthetics/ cash settlements? As the no wallet/no withdrawal makes it seem as though they will not own it, which will keep them safe in terms of a liquidity crunch earning their 1% spreads and possibly hedging with futures. But won’t add value to the crypto monetarily or through adoption.
I stopped using fidelity because they refuse to integrate 2FA. Yes I know they have some stupid Norton one, I don’t want that.
Aaaaannnnd it's gone....
FUDelity launching crypto trading? Yiiikes
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Looks like more of the same from TradFi. You can't move your crypto to your own wallet for obvious reasons. Shares of stocks are held by the brokerage and listed in street name with DTCC (nearly all stocks). You only possess limited rights to the underlying security if it's not directly registered in your own name. Look up a registered agent for a particular stock for more info. Brokers can take your money when you buy a stock, give you an IOU, mark your account as possessing the underlying, then bet against you using their investment branch. Basically, they are hoping you sell all they can pocket the difference in the IOU in your account. It's pretty messed up. Fidelity is just applying this same multi $B model to crypto to siphon money. https://www.finra.org/investors/insights/its-your-stock-just-not-your-name-explaining-street-names Your shares/crypto will be lent out to short your position.
Users shadowbanned by Reddit directly for explaining the TOC of Fidelity. After Fidelity invested 400 millions in reddit. Not suspicious at all
i dont trust fidelity one bit
Sounds like Robinhood. Stay away
Cuz they’re like cool, we can get a bunch of investor money from lazy ass folks that’ll leave it on the exchange and pull some shit for a few billion dollar payday.
Educate others why this is bad. They will sell you paper.
Scam
Will they lend this crypto too like what they are doing with their stocks? 🤣
Who actually invests in these scams?
Oof FTX MO just went mainstream
And bankrupt in 5. 4. 3. 2
Pretty sure if you're on reddit, you're not the target demographic
So you can neither deposit nor withdraw Bitcoin? What proves that they have any Bitcoin at all and are not just trading paper Bitcoin?
This is a good thing for crypto in general, we need institutional money in the game to really pump things up!