The crypto bear market hasn’t slowed things down as investment firm State Street reports high institutional crypto demand. They also said that it shows the belief of investors in this new asset class and that it is here to stay. It’s not just State Street we have heard some pretty big announcements lately. The Bank of Russia plans to use crypto for cross-border payments, and IMF also said that digital assets are a stronger hedge against weak currencies.
Unwavering crypto demand despite the bear market
The market sell-offs haven’t stopped institutions from investing in cryptocurrencies. State Street also reported that June and July saw a high volume of activity in the market, and institutional players weren’t slowing down their investments. The firm cleared that the dip hasn’t increased the demand by any chance but hasn’t slowed it down as well. So, according to them, the asset class is here to stay.
The management firm is present in over 100 global markets and has over 40k employees. They also have a whopping $38.2 trillion in assets under custody and $3.5 trillion in assets under management (Do not confuse both) as of 30th June. This shows that do have a lot of market exposure to understand the true essence of demand.
The investment firm has a digital arm that offers a lot of services. State Street has investment options such as cryptocurrencies, stablecoins, digital cash, CBDCs, and many more.
Most financial institutions have started to offer full-blown crypto services
The demand is so high in the crypto sector, and considering we are in a growth phase right now, it makes a lot of sense that financial institutions are offering crypto services to their clients. Recently, BlackRock, the largest asset manager in the world, started a Bitcoin private trust which shows the belief in the upcoming demand in the future. Goldman Sachs has also started offering crypto services and also offered its first BTC-backed loan in 2022. Banks have also entered the crypto game and are offering custody and OTC investment services. The price slump doesn’t indicate the real health of the market right now. We are in a positive environment at present.
What are your thoughts as investment firm State Street reports high institutional crypto demand? And do you think we are in a high growth phase right now? Let us know in the comments below. And, if you found our content informative, do share it with your family and friends.
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