Fidelity, Schwab Reportedly Tapping Market Makers For Crypto Trading Platform

Key Insights:

  • Fidelity and Schwab will be working with Citadel Securities on its new crypto marketplace.
  • They will not offer crypto trading directly due to U.S. regulatory uncertainty.
  • The institutional crypto marketplace is expected to launch in early 2023.

Mainstream and institutional investors may have more avenues into crypto markets as two more big names enter the fray. As reported by FXEmpire on June 8, Citadel Securities announced plans to build a cryptocurrency marketplace with several partners.

It has been reported that Charles Schwab and Fidelity will be among those working with the firm with a plan to roll out the crypto marketplace in early 2023.

Fidelity Investments provides financial planning, retirement plans, wealth management services, and trading and brokerage services. Last week it was reported that the firm plans to fill 210 new positions for its Fidelity Digital Assets division, signaling longer-term ambitions in the crypto space.

Charles Schwab (SCHW) is an American multinational financial services company, bank, and stockbroker with an electronic trading platform.

Institutional Arrival

According to Barron’s, a Schwab spokeswoman confirmed the move into the crypto sector:

“Schwab has made a minority, passive strategic investment in a new digital asset venture. We know there is significant interest in this cryptocurrency space, and we will look to invest in firms and technologies working to offer access with a strong regulatory focus and in a secure environment.”

A spokeswoman for Fidelity added, “Fidelity supports efforts that further efficiency in the digital assets marketplace and provide more optionality to source liquidity for investors,”

The move could be a big step towards onboarding more institutional and longer-term investors. The current options are limited to crypto exchanges which require some technical knowledge to use, and platforms such as PayPal (PYPL), which recently enabled crypto withdrawals, or Robinhood (HOOD)

It could be that these major institutional players are viewing the current bear market as a buying opportunity. Crypto markets have gone through several boom-bust cycles such as this one over the past decade.

However, Schwab did state that it had no plans to offer direct crypto trading due to the regulatory uncertainty in the United States. The spokeswoman continued:

“We recognize that there is considerable interest in cryptocurrencies, particularly in certain segments of the market, and will consider introducing direct access to cryptocurrencies when there is further regulatory clarity,”

Fidelity does not offer direct crypto trading yet, either. Its clients can get exposure to digital assets through thematic exchange-traded funds. It also announced plans to provide access to Bitcoin (BTC) in its 401(k) plans, a move that has drawn scrutiny from U.S. policymakers.

Crypto Winter Deepens

Crypto markets are back in the red again today, printing a 2% decline in total market capitalization over the past 24 hours. The figure currently stands at $1.29 trillion, down 58% from its peak of just over $3 trillion in November.

Crypto traders and analysts believe that there is more pain to come as the crypto winter deepens. Previous bear cycles have had a ‘capitulation wick,’ or massive final sell-off where the last of the weak hands are flushed out.

Fidelity To Boost Crypto Adoption With Bitcoin 401(k) Plan

Key Points

  • Fidelity will soon allow US-based 401(k) retirement savers to allocate up to 20% of their portfolio to bitcoin, subject to employer approval.
  • Analysts hailed the announcement as another step toward mainstream adoption of digital assets.
  • But US regulators have cautioned US employers to “exercise extreme care”.

What Happened?

According to a WSJ report on Tuesday, US asset management giant Fidelity Investments will later this year allow retirement savers to allocate up to 20% of their 401(k) portfolio into bitcoin, the first major US retirement-plan provider to make such an offering.

The roughly 23,000 companies that currently use Fidelity to manage their employee’s 401(k) retirement accounts will soon be given the option to allow employees to diversify savings into bitcoin. Employers will choose what percentage (up to 20%) of their employee’s 401(k) is allowed to be allocated to bitcoin, if at all.

Company-sponsored 401(k) retirement saving accounts in the US allow employees to take advantage of tax breaks as they save, whilst also having their retirement pot boosted by employee contributions.

A Boost To Bitcoin’s Mainstream Adoption

Cryptocurrency analysts hailed the latest announcement from Fidelity Investments as another step towards the mainstream for digital assets.

Fidelity is the single largest US-based provider of retirement plans, administering more than 20M individual accounts with over $2.7T in assets under management.

Analysts at the WSJ speculated that “Fidelity’s embrace of bitcoin could prompt wider acceptance among employers” and commented that “the endorsement of the nation’s largest retirement-plan provider suggests crypto investing is moving further into the mainstream.”

Dave Gray, Fidelity’s head of workplace retirement offerings and platforms, said following the announcement that “we have seen growing and organic interest from clients”, especially those with younger employees.

“There is a need for a diverse set of products and investment solutions for our investors,” he commented. “We fully expect that cryptocurrency is going to shape the way future generations think about investing for the near term and long term”.

Regulator Pushback

Fidelity’s announcement comes after the US Department of Labour (DoL) issued a warning to employees about allocating employee 401(k) saving pots towards digital assets last month.

Employers should “exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan’s investment menu”, the DoL said. The department warned employers planning to offer cryptocurrencies in 401(k) plans to expect to be pressed on how they can “square their actions with their duties of prudence and loyalty under U.S. pension law”.

Given bitcoin and the wider cryptocurrency market’s reputation for volatility coupled with warnings from regulators, it remains to be seen to what extent often risk-averse employers choose to take up Fidelity’s bitcoin 401(k) offering.

Wild Bitcoin Swings A Thing Of The Past – Fidelity Executive

Fidelity’s decision to offer employers offer 401(k) account allocation towards bitcoin chimes with a view recently expressed by one of the company’s executives Jurrien Timmer that the wild swings seen in BTC/USD in recent years is a thing of the past.

Timmer commented on Twitter that “until recently, Bitcoin would often overshoot its intrinsic value to the upside during bull markets and to the downside during bear markets… It was a momentum game with little to no resistance, until the trend reached exhaustion”.

However, Timmer noted that bitcoin is now more closely following a demand curve that is based on bitcoin network growth/the rise in the number of users, as opposed to prior supply curves.

That makes bitcoin a more efficient two-way market, Timmer said. “As Bitcoin’s value becomes better understood by more and more investors, there could be more efficient accumulation when Bitcoin swoons, and more determined distribution when it moons… That’s what makes a two-way market.”

Fidelity To Offer Digital Asset Investment as Part of Retirement Plans

Key Insights:

  • Fidelity will soon enable the option of investing in Bitcoin with their retirement plans.
  • This month the company had also launched a crypto payments ETF and a Metaverse ETF.
  • The company recently also launched the world’s cheapest Bitcoin ETP in the European region.

As investment plans go, most people choose to put their money into safe options that are government regulated, centrally held, and stem from traditional finance options.

However, the emergence of crypto in the mainstream financial world has changed that, with companies such as Fidelity now offering cryptocurrency for investment to the masses.

Invest in Bitcoin Before You Retire

Known to be the largest provider of 401(k) plans in the United States of America, Fidelity, announced that it would soon be enabling the option of investing in Bitcoin and eventually into other cryptocurrencies as well. However, the decision is subject to the employers’ choice. 

In an interview with The New York Times, the Head of workplace retirement offerings and platforms at Fidelity Investments, Dave Gray, stated,

“We started to hear a growing interest from plan sponsors, organically, as to how could Bitcoin or how could digital assets be offered in a retirement plan.”

And in response to that, they brought this option where individuals could directly invest in Bitcoin and other assets without going through the trouble of making a separate account on a cryptocurrency exchange. 

Although in doing so, Fidelity will charge between 0.75% to 0.9% in fees for every Digital Asset Account. On top of that, an additional trading fee will be implemented that the company has not yet revealed but will apparently be “competitively priced”.

According to Gray, the biggest public holder of Bitcoin, MicroStrategy has already signed up for this service, which isn’t surprising since Michael Saylor is pretty much building the company on the back of Bitcoin.

This announcement comes after Fidelity already announced its efforts to make strides in the crypto space with its offerings.

As reported by FXEmpire, Fidelity International recently announced the launch of its spot Bitcoin exchange-traded product (ETP) in Europe, which is also the cheapest Bitcoin ETP globally, with a total expense ratio (TER) of 0.75%.

Furthermore, just this month, Fidelity Investments launched a Crypto Industry and Digital Payments ETF (FDIG) and a Metaverse ETF (FMET) to target a younger client base.

Coming at the Right Time?

The question of security constantly nags investors since the crypto market’s volatility is unpredictable and unrelenting.

In the last couple of weeks, the total market cap of all cryptocurrencies has been fluctuating around $2 trillion. After breaching the level in April and touching $2.16 trillion, the total market cap is back at $1.83 trillion.

The total market capitalization of cryptocurrencies | Source: TradingView

This might keep employers skeptical about providing Fidelity’s new services to their employees.

Fidelity Investments Targets Investors with Web3 ETFs

Key Insights:

  • Fidelity Investments targets a younger client base with web3 ETFs.
  • This month, Fidelity launched a digital asset and a Metaverse ETF.
  • U.S. banks have been bullish about the Metaverse for some time, with JPMorgan buying land in the Metaverse.

As more mainstream players enter the NFT space and the Metaverse, investors will be looking for both active and passive investment opportunities.

Such is the hype that JPMorgan and Citi have delivered impressive projections for the web3 economy.

Last month, Citi jumped on the web3 bandwagon, projecting a $13 trillion Metaverse by 2030. Citi’s projection followed a more conservative JPMorgan projection in February.

JPMorgan projected the Metaverse to deliver over $1 trillion in Metaverse-related yearly revenues. In February, JPMorgan put its money where its mouth is, buying land in Decentraland (MANA).

It, therefore, comes as little surprise that leading investment shops are starting to offer web3 investment products.

Fidelity Investment Launches Web3 ETFs to Widen the Client Base

This week, Fidelity Investments launched the Fidelity Crypto Industry and Digital Payments ETF (FDIG) and the Fidelity Metaverse ETF (FMET).

Fidelity launched FMET on April 19, 2022. According to the Fund objective,

“The fund seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity Metaverse Index.

The Fidelity Metaverse Index is designed to reflect the performance of a global universe of companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the Metaverse.”

Fidelity launched FDIG on April 21, 2022. According to the Fund objective,

“The Fund seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity Crypto Industry and Digital Payments Index.

The Fidelity Crypto Industry and Digital Payments Index is designed to reflect the performance of a global universe of companies engaged in the activities related to cryptocurrency, related to blockchain technology, and digital payments processing.”

For investors looking for low fee investment opportunities, the two ETFs have a net expense ratio of 0.39.

As of June 2021, Fidelity Investments had US$4.2tn in assets under management.

Fidelity Investment Follows in the Footsteps of ProShares

ProShares is an issuer of exchange-traded funds with a 2021 Assets Under Management of US$65bn.

The ProShares Vers ETF launched on March 15, 2022, and “seeks investment results, before fees and expenses, that track the performance of the Solactive Metaverse Theme Index.”

“The Solactive Metaverse Theme Index is designed to track the performance of companies that have, or are expected to have, significant exposure to the provision of products and/or services that contribute to the Metaverse industry, as determined by the index methodology.”

Compared with the Fidelity ETFs, the ProShares Vers ETF has an expense ratio of 0.58.

With only a handful of big names already in the space, more ETFs will launch. Mutual funds will likely follow.

Stablecoin Issuer Circle Secures $400 Million Funding Round

Key Insights

  • BlackRock will also serve as asset manager for stablecoin reserves.
  • Stablecoins have come under increasing scrutiny from U.S. financial regulators. 
  • USDC supply has grown by 355% in a year and is now more than 50 billion.

Institutional investment giants BlackRock and Fidelity led the $400 million funding round for Circle Internet Financial Ltd., the issuer of USD Coin (USDC). Other investors included Marshall Wace and Fin Capital, according to the announcement on April 12.

BlackRock (BLK) has also entered into a wider partnership with Circle, which includes exploring capital-market applications for the USDC stablecoin. It will also serve as a primary asset manager for the USD Coin’s cash reserves.

The new funding round, which is expected to close at the end of Q2, promotes Circle’s continued strategic growth as demand for dollar-pegged digital currencies and related financial services continue to scale globally.

Stablecoin Demand

Jeremy Allaire, co-founder, and CEO of Circle commented on this growth which is evident by observing USDC supply increases. Since the same time last year, USDC supply has grown by 356%, underlying that demand for stablecoins.

“Dollar digital currencies like USDC are fueling a global economic transformation, and Circle’s technology infrastructure sits at the center of that change. This funding round will drive the next evolution of Circle’s growth,”

BlackRock’s chief operating officer Rob Goldstein and global head of ETFs and index investments, Salim Ramji, expressed agreement in a memo to employees on April 12. We believe digital assets and blockchain technologies will become increasingly relevant for BlackRock and our clients, they stated.

Stablecoins have come under increasing scrutiny from U.S. lawmakers who are growing concerned over their reserves or backing. A physical dollar should back each coin though full audits for the industry’s leading stablecoin issuer, Tether, have yet to materialize.

Circle will now be one step ahead of its rival, with BlackRock managing those cash reserves.

Ecosystem Outlook

Circle is the world’s second-largest stablecoin issuer, with a USDC supply of 50.6 billion. Rival Tether (USDT) currently has a circulating supply of 82 billion though it has lost market share to Circle and other stablecoins over the past year or so.

The total supply of stablecoins is around $186 billion, which is approximately 10% of the entire crypto market capitalization, according to CoinMarketCap.

With Demand Curve Growing Bitcoin May Behave like Apple Stock: Exec

Stark similarities between Bitcoin’s trajectory and the path of tech socks in their early days have often been pointed out by many market experts.

Recently, the Director of Global Macro at investment giant Fidelity, Jurrien Timmer stated in a Tweet that Bitcoin has a similar growth path to Apple

Bitcoin and Apple’s Aligning Trajectory

Despite Bitcoin’s rangebound price movement between the $30K to $45K mark, market experts had a good vision for the top cryptocurrency. So much so that some of them like Timmer believed BTC could pull off a classic Apple stock move. 

Timmer said that even though Bitcoin had been in a choppy trading range for almost a year now, bouncing between $30K and $65K and the ‘up-or-down debate’ continued to dominate the market it is nothing but ‘noise’. According to the exec for Bitcoin, ‘the network is what matters.’

He further pointed out that what matters is where the demand curve for the coin is headed, and the answer for that continues to be ‘up and to the right.’

Notably, the number of Bitcoin addresses with a value of more than zero continued to move higher, following a simple power regression curve.

FXempire, BTC, Crypto
Source: Twitter

A comparison of Bitcoin’s growth track to historical S-curves, such as mobile phone subscriptions and internet adoption highlights an interesting similarity between the two asset classes.

According to Timmer, Bitcoin’s price targets now lie in a similar regression curve to Apple’s growth from around 1990. 

Timmer leveraged Metcalfe’s Law, to analyze Apple’s growth, noting that the value of a telecommunications network is square of the number of connected users in the system.

Judging by the same method, Apple’s price has grown 1,457 times since 1996, with the price-to-sales ratio surging by a factor of 30 over the same period of time.

On the other hand, while leveraging BTC’s price and price-to-network ratio the coin’s valuation has grown over 800 times since 2011, with the value rising over 640 times. The Director suggested that the long-term growth or end paths for the two assets looked eerily similar. 

FXempire, BTC, Crypto, APPL
Source: Twitter

He further said:

“Bitcoin’s valuation has increased 867x since 2011, while its price has increased 640,633x. If we apply Metcalfe’s Law and calculate the square of 867, we get 751,111. This is roughly in line with the 640,633x realized price gain. If the growth in valuation is an exponent of the growth in sales (per Metcalfe’s Law), then price should increase as an exponent of both metrics.” 

BTC vs Tech Stocks

The recent BTC volatility has come amid a broader market selloff driven by investors recalibrating their portfolios to account for a more aggressive Fed policy amid surging inflation.

The benchmark S&P 500 Index and tech-heavy Nasdaq have both seen close to a 2% decline over the last day while BTC was back near the $40K mark. 

Furthermore, a lot of skepticism has stemmed from the fact that an aggressive central bank tightening cycle going forward could hamstring risky assets.

That said, industry experts like Nic Carter, a partner at Castle Island Ventures, are of the opinion that Bitcoin’s performance may be heavily correlated with risk assets like long-term tech stocks, according to an industry expert.

While with BTC’s market maturing the top coin’s trajectory could match tech stocks and traditional assets, up until now BTC has continued to outperform them. As reported earlier, as of 13 February 2022, Bitcoin had outperformed the top six tech stocks by an average return on investment (ROI) of 12.24%.

Fidelity’s Paper Argues in Favor of Bitcoin, Calls it Superior Money

Fidelity Digital Assets (FDA) has described Bitcoin as superior money compared to other digital currencies. 

Fidelity’s Describes Bitcoin as Superior Money

This was contained in a 26-page report published by the digital assets arm of Fidelity Investments. According to the investment firm, investors who are just getting into crypto need to view Bitcoin differently from other crypto assets.

The paper titled Bitcoin First largely espoused the differences between Bitcoin and other digital assets. Using these differences, it explains that Bitcoin is far above any cryptocurrency, and it’s unlikely for any other asset to overtake BTC in monetary value:

Bitcoin possesses a lot of good qualities of money, combining the scarcity and durability of gold with the ease of use, storage, and transportability of fiat.

However, it stated that it wouldn’t go as far as to claim there won’t be any other money, but it seeks BTC as the monetary good that’ll dominate the digital asset ecosystem.

Advises Traditional Investors to Invest in BTC

Going further, the investment firm called on traditional investors to invest in Bitcoin. It described it as the best entry point for any traditional investor seeking to add digital assets to their portfolio. Thus, investment focus should be on BTC as an asset class on its own.

The call by FDA isn’t surprising given the position of Fidelity in the crypto scene. The leading investment firm is one of the companies trying to get traditional investors into crypto. 

Last year, Fidelity launched a spot Bitcoin exchange-traded fund (ETF) in Canada. This is one of few ETFs for spot Bitcoin globally, with US authorities only granting futures BTC ETF so far.

Bitcoin’s Dynamic Growth

The report on Bitcoin echoes the general view among Bitcoin adherents and the goal of Satoshi Nakamoto — the pseudonymous founder of the coin.

Satoshi’s goal for creating Bitcoin was for it to be e-money and possibly replace fiat. In previous times, investors and skeptics alike had largely spoken against the coin but with leading financial institutions like Fidelity considering it a superior form of money, it is a sign of the level of growth the decade-old asset has seen.

Already, mainstream adoption of BTC has grown significantly within the last two years especially as companies such as Microstrategy continue to buy the asset and with El Salvador adopting it as a legal tender despite the international community outcry.

Fidelity Files Metaverse ETF With SEC, After Spot Bitcoin ETF Rejection

Asset management giant Fidelity Investments has filed another exchange-traded fund (ETF) with the U.S. regulator, this time tied to the metaverse.

Fidelity’s filings come soon after the Securities and Exchange Commission (SEC) rejected its spot Bitcoin ETF, Thursday.

Fidelity, on 27 January, filed a metaverse ETF – the Fidelity Metaverse Index – with an aim to track public companies that “develop, manufacture, distribute, or sell products or services related to establishing and enabling the Metaverse,” the application noted.

The entry of the world’s fourth-largest fund manager, with $8 trillion worth AUM, into the burgeoning metaverse market, will be seen as a further sign of the growing acceptance of the meta-space.

The preliminary prospectus stated that Fidelity would primarily invest in the stocks of companies included in a Fidelity index comprising businesses that are engaged in activities related to “cryptocurrency, blockchain, and digital payments processing.”

Pile of Metaverse ETFs

This isn’t the first ETF tied to metaverse that is waiting for approval from the SEC.

ETF issuer ProShares, which is well-known for launching its Bitcoin Futures ETF in the U.S., filed a new metaverse-focused ETF application with the SEC in December’21.

The index is similar to Fidelity, reflecting the performance of a number of companies offering metaverse-related services. The ‘ProShares Metaverse Theme ETF,’ featured some of the top-rated stocks such as  Apple, Meta, and Nvidia.

In yet another case, Roundhill Investments launched a metaverse ETF in June last year, followed by South Korean asset management firms such as KB Asset Management and NH Amundi Asset Management have listed metaverse-related ETFs, first in the country.

Closely After Spot Bitcoin ETF Rejection

The metaverse ETF filings come the same day the SEC piled Fidelity’s spot Bitcoin ETF among other rejected BTC ETFs.

This is because the U.S. regulator has been citing concerns of fraud, manipulation, and investor protection in the crypto-space over the last few months.

The SEC has been stringent in approving any BTC ETFs that come their way. For instance, last week, the watchdog turned down a spot Bitcoin ETF proposed by First Trust and Skybridge Capital, citing similar reasons.

US SEC Rejects Fidelity’s Bitcoin Spot ETF, as BTC Price Still Struggles

Another Bitcoin bear market and another rejected spot ETF have left market participants in a gloomy state. On January 27, the spot Bitcoin ETF proposal from investment giant Fidelity was shown red light by the Securities and Exchange Commission of the US.

SEC’s Disapproval of BTC Spot ETF

On Thursday morning, according to a newly released filing, the SEC handed down its disapproval for Fidelity’s spot ETF. Over the last few months, the regulatory body has raised concerns around cryptocurrency-related frauds, manipulation, and investor protection.

While similar concerns have been cited by the SEC for many years, they seem to have tightened their hold around crypto regulations of late. 

SEC’s disapproval of BTC spot ETF dates back to its rejection of a Bitcoin ETF proposal put forward by the Winkelvoss brothers Cameron and Tyler, owners of the Gemini exchange.

In the statement released the SEC stated that any rule change in favor of approving the ETF would not be aimed at preventing ‘fraudulent and manipulative acts and practices’ nor would it necessarily ‘protect investors and the public interest.’

Talking about the BZX exchange, the SEC added: 

“BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section.”

That said, the regulatory body extended its deliberation window to approve or deny the offering in July and then in November following Fidelity’s application in March 2021. 

This isn’t the only spot ETF that was turned down by the US SEC, in fact, just last week, the regulatory body turned down a proposed spot ETF focused on Bitcoin from First Trust and Skybridge Capital on similar grounds. A decision on an ETF submission from Stone Ridge and NYDIG is expected by mid-March. 

The spot ETF Tussle Continues

In October 2021, SEC approved the first-ever Bitcoin futures backed ETF which was launched by ProShares trading on the New York Stock Exchange. Other approvals that followed included the Valkyrie Bitcoin Strategy ETF and the VanEck Bitcoin Strategy ETF.

The futures-ETF approval in October sent BTC’s price up by almost 25% and the positive narrative around the top crypto asset at that time also helped it reach the all-time high of $69,000 in November. 

Seemingly, however, SEC hasn’t had a good outlook towards BTC spot ETFs and in December 2021, the regulator rejected investment firm Kryptoin’s proposal to list a spot Bitcoin ETF. It has also rejected spot Bitcoin ETF proposals from WisdomTree. 

Notably, Bitcoin’s price was still below the crucial $40,000 mark as the asset traded at $36,664.37 noting 3.45% losses at press time. The recent weekend losses combined with the BTC flash crashes throughout January have affected the coin’s trajectory. BTC was down 47.13% from its all-time high at the time of writing as the king coin’s 1-year ROI vs USD noted merely +18.66%. 

Big Money All Over Fidelity National Financial

And the specialty financial company could rise even more due to its insurance and real estate services businesses. But another likely reason is Big Money lifting the stock.

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Fidelity National Financial has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals FNF has made the last year.

The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted 16 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Fidelity National Financial has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year sales growth rate (+58.8%)
  • 3-year earnings growth rate (+26.4%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, FNF has recently become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

FNF has a lot of qualities that are attracting Big Money. It’s made this list six times since 2016, all in the past year, with its first appearance on 4/13/2021…and gaining 16.63% since. The blue bars below show the times that Fidelity National Financial was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the financial sector according to the MAPsignals process. I wouldn’t be surprised if FNF makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Fidelity National Financial rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it offers an attractive 3.52% dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no positions in FNF in personal or managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Interactive Brokers Launches Cryptocurrency Trading

U.S. clients of the brokerage will now be able to trade and custody bitcoin, ethereum, litecoin and bitcoin cash alongside stocks, options, futures, bonds, mutual funds and exchange-traded funds, the company said.

“As financial markets evolve, sophisticated individual and institutional investors are increasingly seeking out allocations to digital currencies as a means of achieving their financial objectives,” said Chief Executive Officer Milan Galik.

Chairman Thomas Peterffy said in June that Interactive Brokers, which caters to active traders and sophisticated investors, would launch trading in cryptocurrencies by the end of the summer as the nascent asset class becomes more mainstream.

Other brokers, including Robinhood Markets Inc and TradeStation also provide cryptocurrency trading, while Charles Schwab Corp and Fidelity currently offer access to bitcoin futures.

Crypto-trading commissions at Interactive Brokers will be 0.12% to 0.18% of trade value, depending on monthly volume, with no added spreads, markups, or custody fees, the New York-based company said.

Interactive Brokers said it partnered with Paxos Trust Company, a regulated provider of cryptocurrency services that also works with companies like PayPal on digital asset trading, to enable the new service.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by John McCrank; Editing by Marguerita Choy)

 

Wall Street Group to Revive Talks With China to Find Common Ground – Bloomberg News

Barrick Gold Corp Chairman John Thornton, who is also a veteran of Goldman Sachs Group Inc, is in Beijing meeting with high-ranking Chinese officials, Bloomberg said, citing two people with knowledge of the matter.

According to Bloomberg, Thornton is one of the chairs of the influential group dubbed China-U.S. Financial Roundtable that was conceived during escalating tensions between the U.S. and China in 2018, with the talks featuring emissaries from U.S. finance and senior Chinese regulatory officials.

Previous meetings between Chinese officials and Wall Street banks have included participants such as BlackRock, Vanguard, JPMorgan and Fidelity.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Bhargav Acharya in Bengaluru; Editing by Kim Coghill)

 

A Post-Covid Hangover – Should You Worry About Your Portfolio?

Amazon executives noted shifting consumer habits as the pandemic eases and people become more mobile. Amazon forecasted the next quarter’s sales at between $106 billion and $112 billion, compared to Wall Street expectations for right around $119 billion.

Amazon’s projections would still represent growth of +10% to +16%. Keep in mind, bears are also pointing to ongoing fears of supply chain hiccups, higher-trending inflation, and new coronavirus outbreaks. Earnings come at a busy pace again today with results from Caterpillar, Cerner, Chevron, CNH Industrial, Colgate Palmolive, Enbridge, Exxon Mobil, Johnson Control, and Procter & Gamble.

The worry on Wall Street is that this new normal rate of growth will be slower than many analysts and trading firms are forecasting coupled with higher inflation and or supply chain dislocations corporate profits could fall under some pressure or in this case be less than Wall Street is forecasting for the next few quarters. Bulls expect more consumer spending will shift from goods and pandemic-related services (delivery, video games, cloud/collaboration software) but are still betting on pent-up demand for things people missed out on during lockdowns, as well as goods and services that are currently in short supply.

Data to watch

Updated inflation data is also on tap with the ISM Manufacturing Index on Monday and the Services Index on Wednesday.

There will be plenty more earnings next week too, including Simon Properties and Zoom on Monday; Activision Blizzard, Alibaba, Amgen, Clorox, ConocoPhillips, Eli Lilly, Fidelity, Match Group, Monster Beverage, Occidental Petroleum, and Phillips 66 on Tuesday; Allstate, CVS, Etsy, General Motors, Kraft Heinz, Marathon Petroleum, MetLife, MGM Resorts, Rocket Companies, Roku, Trane, and Uber on Wednesday; Adidas, AMC, Carvana, Cigna, Cloudflare, Corteva, Duke Energy, Kellogg, Moderna, Nintendo, Novo Nordisk, Siemens, Square, Wayfair, Zillow, and Zoetis on Thursday; and Dish Network, Dominion Energy, and DraftKings on Friday.

Insider Accumulation

ES ##-## (Daily) 2021_08_01 (19_25_02)

I have mixed feelings about SP500. There are a few signs of weakness. However, it might be the result of low summer activity. Advance-Decline Line is clearly bearish. Insider Accumulation is also not that strong. Moreover, the Volatility Index is very low and potentially it could bring a pullback. In any case, SP500 futures failed to close the week above Gann resistance. And that is also a negative sign.

The Federal Reserve policy is still supportive. But keep in mind, that SP500 has rallied around 100% since the pandemic bottom without any pullback. And the retest of key support zones near 4200 and 4000 is realistic.

On the other hand, the continuation of the rally is also possible but only if price sustains above 4400. If that happens, bulls will target 4500 and 4600 in extension.