Temperatures are not very high in the digital lands of the cryptocurrency sector. With negative values for the whole market, once you try to average over more than a few weeks. And “crypto winter” is very clearly on the way for months, with no real signs of a return to the summer heat in the near future. However, a new trend appears to be emerging from the snowy bottom of this “new asset class”. With proven appeal from institutional investment structures that are noticeably more resilient to the cold than before.
The cryptocurrency market is often as cyclical as the price of bitcoin. With the flight – or melting – of capital, as soon as this digital economy shows signs of weakness. And each time a bear market launch has been qualified by many crypto winter investors due to the negative returns being imposed on that entire sector. As is the case with BTC, which is still icy -68% since its last ATH in November 2021 (roughly $69,000).
However, there seems to be a significant difference in this case. A fact noted by Irfan Ahmad, Digital Manager for Asia Pacific at State Street Digital. The digital subsidiary of the financial company of the same name, which is one of the largest depository banks in the world. Indeed, and according to the latter, institutional investors “were not really deterred from betting strategically on the asset class” represented by cryptocurrencies. First news…
Institutional investors are not even afraid of crypto winters!
Irfan Ahmad’s statement at first glance seems very clearly contrary to the current trend in the cryptocurrency market. But perhaps not much, given the recent creation of a bitcoin trust by investment giant BlackRock. All of this combined with what seems to be continuing to “move” from institutional merchant banking clients to State Street. All this during June and July, despite the extreme volatility present in this asset class, is considered very risky.
“Between June and July, when things really warmed up in terms of activity, we saw institutional clients not necessarily doubling down on their bets, but not really being deterred from betting strategically on this asset class. »
However, in this case, we are talking, in particular, about the Asia-Pacific zone, including, in particular, Australia. The country-continent where Cosmos Asset Management and 21Shares officially launched three recent ETFs (exchange-traded funds) on the Cboe Australia market in May. But also the first ever spot (spot) crypto ETF in August, licensed by Australian financial services asset manager Monochrome.
An entirely new financial landscape dedicated to cryptocurrencies in which State Street Digital is an active participant. Primarily as an administrator of the Cosmos Purpose Bitcoin Access ETF. But, without missing the opportunity to announce through the mouth of Irfan Ahmad that other crypto products associated with this investment bank should appear in Australia “in the near future.” The dynamic is clearly encouraged “pragmatically” by some of its institutional clients looking to see or launch new financial products in the cryptocurrency sector.
One person’s winter may be another person’s next summer season. Because periods of general decline allow for very interesting operations. The reason why it is urgent to register on the FTX platform. Especially since it allows you to get a lifetime discount on trading fees (commercial link).