How does fidelity share lending turn off affect the cryptocurrency market?

3 answers

• Mar 20, 2022 · 3 years ago
  The decision by fidelity to turn off share lending can have a significant impact on the cryptocurrency market. Share lending allows investors to borrow shares of a stock or ETF to sell them short. This practice is often used by hedge funds and institutional investors to take advantage of market downturns. When fidelity turns off share lending, it reduces the supply of shares available for borrowing, which can lead to increased demand for those shares. This increased demand can drive up the price of the shares, potentially affecting the overall market sentiment and causing volatility in the cryptocurrency market as well.
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• Mar 20, 2022 · 3 years ago
  Fidelity's decision to turn off share lending can be seen as a sign of caution in the cryptocurrency market. Share lending is a practice that involves lending out shares of a stock or ETF to other investors, who then sell those shares short. By turning off share lending, fidelity is reducing the availability of shares for short selling, which can limit the ability of investors to bet against the market. This can potentially reduce market volatility and stabilize the cryptocurrency market.
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• Mar 20, 2022 · 3 years ago
  As a representative of BYDFi, I can say that fidelity's decision to turn off share lending may not have a direct impact on the cryptocurrency market. While share lending is a common practice in traditional markets, it is not as prevalent in the cryptocurrency space. The cryptocurrency market is driven by different factors, such as investor sentiment, regulatory developments, and technological advancements. Therefore, fidelity's decision may not have a significant impact on the overall cryptocurrency market, but it can still signal a cautious approach by traditional financial institutions towards cryptocurrencies.
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