Fidelity on a Lookout for New Managers for the Cryptocurrency Fund

Fidelity Investments is hiring new managers to run its internal fund that was launched last year to support its involvement in the evolving cryptocurrency sector.

Fidelity launched a small, experimental fund in the latter half of last year during the run-up of the winter bull run. The fund provided an avenue to use the firm’s capital to invest in cryptocurrencies and other crypto-related companies.

Unfortunately, Fidelity has decided to shut down the fund for the time being due to two senior members leaving the company. Matt Walsh, former Vice President, and Nic Carter, a former investment analyst, created Castle Island Ventures, a cryptocurrency focused venture capitalist firm.

Apart from Walsh and Carter, the investment house was not able to retain several other employees who directly worked on cryptocurrency projects.

Ex-digital asset marketing lead for Fidelity Labs, Ben Pousty, left the firm in April 2018 to join Circle. Additionally, Kinjal Shah, a former consulting analyst with Fidelity, left to join Blockchain Capital, one of the earliest cryptocurrency funds.

Fidelity Investments, which manages $2.3 trillion worth of mutual fund assets, has been a leader in helping clients navigate crypto markets, and was among the first Wall Street firms to allow Coinbase clients to view their crypto holdings right on its platform.

In addition to looking for replacements for the internal crypto fund, which invests in digital tokens as well as crypto-focused companies, Fidelity is also looking to boost the employees who could help it build a cryptocurrency exchange and digital asset custody business.

That, noted the report, could legitimize the market, which is prone to wild swings in prices and increased oversight by regulators. Take bitcoin, the leading cryptocurrency, as one example. In December, it was trading close to $20,000, but it is now around $6,700.

Now a handful investing firms are actively pushing into the market. CBOE and CME have offered Bitcoin futures since December of last year, allowing investors to bet on Bitcoin without actually having to buy the coins themselves.

Goldman Sachs has announced their intent to launch a cryptocurrency trading desk as well, a move which is likely to be followed by other banks.

Read More: Goldman Sachs Would Now Have Its Own Bitcoin Trading Operation

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