BITCOIN MOVES SIDEWAYS AS BLACKROCK FAILS TO PROVIDE UPDATE
Yesterday, BlackRock released its much-anticipated third-quarter earnings. Traders were hoping that the global asset manager would provide an update regarding its previous interest in digital assets, however, the company failed to address the issue at a conference call. Analysts also failed to ask questions about the venture but the assumption is that BlackRock has given up on the digital asset industry. If it had set up a team for crypto, it is likely that it would have been mentioned yesterday.
On a positive note, Fidelity announced that it was setting up a platform to make it easier for institutional investors to invest in cryptocurrencies. In an announcement, the firm said that Fidelity Digital Assets Services will facilitate crypto transactions. A statement from the CEO said:
Our goal is to make digitally native assets, such as Bitcoin, more accessible to investors. We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.
The company will mostly offer custodial services. Already, companies like Coinbase and Gemini offer such services. At the same time, other large firms like Goldman Sachs, Northern Trust, and Nomura have announced that they are exploring the industry. The entry of Fidelity is important because it administers more than $7.2 trillion of assets.
The lack of any news from Blackrock yesterday made the BTC/USD pair trade within a narrow range as shown in the chart below. This was also the case with other cryptocurrencies like Ethereum, Ripple, and Litecoin. As the pair moves in a sideways direction, it is recommended to have a neutral stance on it. This is because a breakout could happen in either direction.