Investors are not sweating crypto: State Street banking giant
State Street Crypto
Modified Date:- Published Date:-Categories: Cryptocurrency
Investors are notsweating crypto: State Street banking giant
StateStreet says global asset managers remain unaffected by the cryptocurrency winter as theygear up to launch a barrage of new digital assets and crypto products. Theprice of cryptocurrencies has fallen this year as interest rates haverisen, with bitcoin falling more than 50 percent since January in what has beendubbed the crypto winter.
However, themultitude of new financial instruments tied to the crypto trend indicatethat traditional players are banking on the asset class to stay around. StateStreet is the largest custodian bank in the world, which means it holdsfinancial assets on behalf of investment managers. It is working with assetmanagement firms as they seek to gain exposure in the crypto sector.
“Duringthe June, July period where things were really heating up in terms of activity,we saw institutional clients not necessarily doubling, but they didn’t reallymiss out on strategic bets on the asset class itself.” in an interview. The conclusion ofthis is that I think there is such a belief that the asset class is here tostay.
And we, asan asset servicer, will clearly partner with our clients where they believetheir ambition lies. The Australian Securities and Investments Commission(ASIC) has repeatedly warned retail investors about the risks of investingin cryptocurrencies, and Ahmed believes regulatory measures are needed todevelop "safeguards" to protect investors. A solid push for the cryptocurrencycould be an important silver lining of the recent past.
He addedthat the recent turmoil in the crypto markets had allowed regulators to "inspectwhat happened and use it as a call to action to provide some railing forinstitutional and retail investors." In Australia, State Street is thefund administrator for the Cosmos Purpose Bitcoin Access exchange-tradedfund (ETF), which it says is the country's first physically backed bitcoinETF.
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