Fidelity's Durbin Says Wealth Managers Are Yet to Grasp Cryptocurrencies

The boss of Fidelity Investments’ institutional arm, Mike Durbin believes that the recent upsurge in the adoption of cryptocurrencies by giant firms is not birthed from a thorough understanding of the cryptosystem.

Mike Dubin in a Tuesday interview with Reuters, tagged many wealth managers and financial advisers under the “educational mode” of crypto.

According to Durbin, most of these wealth managers are still yet to understand the operations of crypto, especially Bitcoin. Thus, they are still studying the emerging asset class although crypto enthusiasm is on the big rise.

While elaborating on his claims, he said;

“While some advisors and investment firms managing the fortunes of wealthy people have grown “sophisticated” and “comfortable” with cryptocurrencies, most are still getting to grips with the technology.” 

He forecasted Bitcoin to become a normal standard for investment portfolios in the near future considering the skyrocketing adoption by mainstream companies and financial firms.

Deducing from Durbin’s perspective, a little understanding of the crypto technology is capable of channeling massive energy into the crypto world. He noted that these institutional investors know what they are doing.

Furthermore, Durbin cited that these interests have tendencies to grow as alternative investments like real estate, hedge funds, and the likes, become more popular.

He explained his opinion saying;

“I think that the growth rate of bitcoin or digital assets will follow in that wake of broader alternative investments.”

In the tale of crypto, Fidelity ranks as one of the leading mainstream investment company to venture into the crypto space following its introduction of a crypto custodian service in 2018.

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