Fidelity considers enabling bitcoin trading for its over 34M brokerage clients - report

In its latest move to embrace cryptocurrencies, Fidelity Investments is exploring allowing its more than 34.4M brokerage clients to trade bitcoin (BTC-USD) on its brokerage platform, The Wall Street Journal reported Monday, citing people with knowledge on the matter. The potential launch would come after the Boston, Massachusetts-based financial behemoth enabled its corporate clients in April to add the world's largest digital token by market cap (BTC-USD) to their managed 401(k) retirement plans. If Fidelity's plan comes to fruition, "I would expect competitors to quickly follow suit & think would largely kill demand for spot bitcoin ETF (assuming RIAs have same ability)," said The ETF Store President Nate Geraci in a Twitter post. Furthermore, Fidelity's latest foray into cryptos will likely result in increased regulatory scrutiny. When the firm added bitcoin (BTC-USD) to their 401(k) plans, Senator Elizabeth Warren (D-MA) questioned why it made that decision and how it will address risks to its customers. Looking at intraday price action, bitcoin (BTC-USD) climbed 3.5% to $22.4K at 4:23 p.m. ET ahead of this week's key inflation data. That's down over 51% from a year ago. Previously, (Jan. 27) SEC rejects Fidelity's spot bitcoin ETF proposal.