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

3 answers

• Mar 22, 2022 · 3 years ago
  Fidelity's decision to turn off share lending can have a significant impact on the cryptocurrency market. Share lending is a practice where institutional investors lend their shares to short sellers, allowing them to sell the shares and potentially drive down the price. By turning off share lending, Fidelity reduces the availability of shares for short selling, which can limit the downward pressure on prices. This can potentially lead to a more stable cryptocurrency market, as it reduces the influence of short-term speculative trading.
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• Mar 22, 2022 · 3 years ago
  Fidelity's decision to stop share lending can also have a negative impact on the cryptocurrency market. Share lending provides liquidity to the market and allows for efficient price discovery. By reducing the availability of shares for short selling, Fidelity may limit the ability of market participants to take short positions and express their bearish views on cryptocurrencies. This can potentially lead to a less efficient market and hinder price discovery, as there may be fewer participants willing to provide liquidity and take the other side of trades.
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• Mar 22, 2022 · 3 years ago
  As an expert in the cryptocurrency market, I believe that Fidelity's decision to turn off share lending will have a minimal impact on the overall market. While share lending does play a role in short-term price movements, the cryptocurrency market is driven by a multitude of factors, including investor sentiment, regulatory developments, and technological advancements. Fidelity's decision may have a temporary effect on specific cryptocurrencies or trading strategies that heavily rely on short selling, but the market as a whole will continue to evolve based on broader trends and fundamentals.
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