Fidelity has announced the launch of a cryptocurrency analytics platform names Sherlock. The platform will offer analytics solutions to fund managers and institutional investors.
Fidelity, a leading asset management firm, is investing more in digital assets. This has been confirmed through an announcement of the firm’s partnership with Sherlock. The announcement on April 29 unveiled a data and analytics solution that will help institutional investors and fund managers.
Fidelity currently has $10 trillion worth of assets in its management. On the other hand, Sherlock will analyze fundamental and technical data, blockchain data, market, data, industry news, and social news all under one roof. The platform will also offer research on crypto assets. The data will be gathered from global institutional investors to enable investors to evaluate the market.
Offer a competitive edge
The new platform to be provided by Fidelity will give the firm a competitive edge over other solutions that are already existing in the market. The main competitor of Fidelity is Messari, which launched an analytics solution back in 2018 to offer research and market data to institutional investors.
Recently, Delphi Digital, a research firm, also announced its partnership with Bitkraft, a gaming venture company. Bitkraft will be able to provide extensive research and analytics to institutional clients. Other companies providing extensive research and analytics include Coin Metrics, Dune Analytics, Glassnode, Santiment, and Skew.
Fidelity has also been expanding its presence in crypto assets. The firm first explored this field in 2014 through Bitcoin mining. The firm also filed an application for launching a Bitcoin ETF in the US, which will place it among the pioneers in that field.
Increased institutional investment in crypto
During the announcement, Kevin Vora, vice president of product management at Fidelity, highlighted an increased interest in crypto by institutional investors. He acknowledged a high growth in digital assets in recent years, and the market was maturing at a fast rate.
Integrating Sherlock at Fidelity will allow investors to explore market data offline and use data to transform business models and offer to test for various tools. One of the executives at Blockchain Capital, Kinjal Shah, also noted that researching the crypto market and gathering data could be tedious.
Sherlock would enable the firm to gather research more efficiently by providing real-time data that is very important in a rapidly growing market. This will motivate more adoption of crypto assets by institutional investors and lead to an overall growth of the market.