Morgan Creek Digital co-founder Anthony Pompliano says financial powerhouse Fidelity will offer its clients the ability to trade a number of leading crypto assets such as Bitcoin and XRP.
Fidelity is currently offering Bitcoin trading to a select handful of clients, and is reportedly planning an official roll out in a matter of weeks. In a new interview with CNBC’s Crypto Trader, Pompliano says Fidelity will focus on the top cryptocurrencies by market cap.
“When it comes to trading, you have to remember that most of these institutional investors are not financial organizations, but we’re talking about pensions, endowments, foundations, sovereign wealth funds.
They don’t think about the bottom 99% of these crypto assets. They’re thinking about Bitcoin and maybe you get into like a Bitcoin or XRP, right? The ones that are top of mind for them are these large market cap assets. And so, I think with Bitcoin that’s a natural place for them to start. They may add two or three others but I wouldn’t expect them to go outside the top five assets in terms of trading.”
Pompliano also talked about the recent hack at Binance, highlighting the fact that the Bitcoin network itself was not hacked.
“There’s a couple things to really clarify here. So, Bitcoin wasn’t hacked, the blockchain wasn’t hacked. Binance, a private company, was hacked. It was out of a hot wallet, the cold storage was not touched. About 2% of all funds under management it looks like were actually taken.
That is a less secure way to store funds and I think that this is a great reminder to people in the community that – not your keys, not your Bitcoin. We’ve got to understand that in the fiat world, there’s 3,000-plus bank robberies that happened in 2018. So there’s over eight bank robberies every single day just in the United States. There’s going to be bad actors who do bad things in these industries and all we have to keep in mind is this stuff happens, but it will pass and we’ll get through this as an industry.”