Temperatures are not very high in the digital lands of the cryptocurrency sector. With negative values all over the market as soon as one tries an average over more than a few weeks. And a very clearly defined “crypto winter” for months, with no real sign of a return to summer heat in the near future. Still, a new trend seems to be emerging from the bottoms snow-covered this “new asset class”. Of proven appeal of institutional investment structuresvisibly more resistant to cold than before.
The cryptocurrency market is often as cyclical as the Bitcoin price. With a flight – or melting – of capital once this digital economy shows signs of weakness. And each time the onset of a bear market is described by many investors as:crypto winter, due to the negative returns imposed on the entire sector. As in the case of BTC still showing an icy -68% since the last ATH in November 2021 (about $69,000).
In the present case, however, there seems to be a remarkable difference. A fact emphasized by Irfan AhmedChief Digital Officer for Asia-Pacific at State Street digital. The digital subsidiary of the financial company of the same name, one of the largest custodian banks in the world. Indeed, and according to the latter, institutional investors “are not really deterred from placing strategic bets on the asset class” representing cryptocurrencies. First news…
Institutional Investors – Not Even Afraid of the Crypto Winter!
Irfan Ahmad’s statement seems very clear at first glance against the current trend in the cryptocurrency market. But perhaps not so much given the recent creation of a Bitcoin trust by investment giant BlackRock. All this in connection with what appears to be a continuation of the “movements” of the institutional clients of the investment bank State Street. All this during the months of June and July, and despite the extreme volatility present in this asset class considered very risky.
” During the June and July period, when activity really picked up, we didn’t necessarily see institutional clients double down, but they weren’t really deterred from placing strategic bets on this class of asset. »
In the present case, however, it is more specific: the Asia-Pacific region, including in particular Australia. A country-continent where three recent exchange-traded funds (ETFs) were officially launched in May by Cosmos Asset Management and 21Shares, on the Cboe Australia marketplace. But also a first-ever spot crypto ETF in Augustlicensed from Australian Financial Services, by asset manager Monochrome.
An entirely new financial landscape dedicated to cryptocurrencies in which State Street Digital is an active participant. This mainly as a fund manager for the Cosmos Purpose Bitcoin Access ETF. But without letting it know, through the mouth of Irfan Ahmad, that other crypto products related to this investment bank should arrive in Australia “in the near future”. A dynamic that is visibly “pragmatically” encouraged by some of its institutional clients who want to see the emergence or launch of new financial products in the cryptocurrency sector.
One person’s winter may be another’s next summer. Because the periods of general decline make it possible to carry out very interesting operations. Reason why it is necessary to register on the FTX platform without delay. Especially since it allows you to take advantage of a lifetime discount on trading fees (commercial link).