Fidelity launches commission-free crypto trading product for Bitcoin and Ethereum

• Fidelity Investment launched Fidelity Crypto to cater to retail investors, focusing on Bitcoin and Ethereum.
• Fidelity Crypto will not charge any commission fee, following in the footsteps of Robinhood and Binance.US.
• Ethereum’s price declined to $1,541 again after rising to $1,600 earlier this week.

Fidelity Investment is one of the largest financial services companies in the world, with over $9.9 trillion worth of assets under its management. The firm also has a footing in the crypto space through its Digital Assets arm and is now expanding on the same. 

Fidelity brings zero crypto commission

According to a report from CNBC, Fidelity is set to launch a new service called Fidelity Crypto, which will bring commission-free crypto trading to retail investors. 

The firm is known for its ETFs and index funds, which have a user base of retail and institutional clients. However, given the recent bearish market conditions, retail investors have taken a much more significant hit than institutions have.

Thus, by offering a crypto trading product free of commission, Fidelity plans on luring this cohort back into investing. Through Fidelity Crypto, investors can purchase and sell Bitcoin and Ethereum as well as make use of Fidelity’s custodial and trading services.

However, in place of bearing losses on the zero commission fee, Fidelity will be factoring in a 1% spread into each and every trade’s execution price. In the past, only Robinhood and Binance’s US arm have been known to make such offerings. 

But as more fee-free services arise, sustaining a customer base will become tougher for trading services platforms charging a fee.

Could have an impact on Ethereum?

This would not be the first instance where Fidelity’s announcement could bear an impact on Ethereum’s price. In the past too, ETH has indicated signs of fluctuation following Fidelity’s announcement of the launch of institutional Ethereum capabilities as well as the sale of Fidelity Ethereum Index Fund, raising $5 million.

Currently, Ethereum is trading at $1,545 after retesting the resistance block ($1,641 to $1,761) earlier this week. On the 4-hour timeframe, the altcoin king highlighted multiple opportunities for short-term traders to cash profits following its 27% rise in October. 

However, going forward, Ethereum could test the short-term critical support at $1,426 since recovery from a failed breach of the resistance block could take time.

But if the bullish winds blow again, ETH could once again attempt to breach the resistance block and reclaim $1,600. 

ETHUSD 4-hour chart

In either case, short-term traders and scalpers can find profits if a close watch on the price action is maintained.