Fidelity’s crypto custody business deteriorated by 60% in 2023 – DiarioBitcoin

The crypto custody service Fidelity lost around USD $8.9 million in 2023, although the company still remains optimistic about this line of operations, claiming that it will be of great importance in the years to come.

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• Fidelity Digital Assets recorded losses of 60% in 2023
• Its crypto custody business saw a significant drop in revenue compared to 2022
• Certain operating expenses also increased during the last year
• While this is happening, the ETF Bitcoin of Fidelity registers very good results among its peers

Fidelity Digital Assetsthe wing of Fidelity Investments dedicated to custody services for digital assets, has recorded a 60% drop in revenue, along with losses that exceed USD $8.9 million during 2023.

Bad balance for Fidelity Digital Assets during 2023

Revelations about cryptocurrency operations Fidelity came to light in a report published by Financial Newsspread by other media, where the company revealed that annual revenues for 2023 fell considerably compared to 2022. For this last period they were almost USD $700,000 compared to USD $1,714 million last year, that is, a reduction that is around 60% from one year to the next.

Hand in hand with this drop in income, we also have to Fidelity Digital Assets reported that the operating expenses of its self-custody service increased more than 32% between 2022 and 2023, reaching approximately USD $9.97 million. Part of the new costs went into increased salaries and other benefits for staff, the report states.

Adding all the payments, Fidelity estimates that the digital asset management recorded losses of almost USD $9.1 million during 2023, which contrasts with the USD $3.2 million recorded in 2022. But despite the above, the company is optimistic about the future of custody services, anticipating that these will become increasingly important as digital currencies see greater adoption, both at the retail and institutional levels.

The ETF Bitcoin of Fidelity

The report of Fidelity Digital Assets comes to place in a period when Fidelity is seeing very good trading results with its Bitcoin-based US exchange-traded fund (ETF), which is listed as one of the best-performing trading products among its peers.

According to information published by Bitcointreasuriesthe ETF Bitcoin of Fidelity it had about 164,117 BTC under administration at the end of last month, currently valued at approximately USD $11,641 million. Regarding commercial results, data from Farside Investors reflect that said product capitalized income of USD $702 million in net balances between May 15 and 31.

With these results, the ETF Bitcoin of Fidelity ranks second among the best-performing products of its type, closely following the fund managed by BlackRock, which has had the best commercial results.

At the moment Fidelity It is also listed as one of the candidates to launch its own ETF Ethereum in cash in the US, so it awaits approval from the Securities and Exchange Commission (SEC) to formally begin operations on the local stock exchange.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.