Institutional interest in crypto assets is on the rise as the blockchain-powered currencies sprint to new highs and lows frequently. The volatility underlying these assets aside, investors are now keeping a close track of the rapid developments in the space.
Cryptos are a different asset class considering they are not listed on any particular stock market or form a part of any particular stock index. In contrast to listed shares and debt instruments, crypto assets can be traded over dedicated crypto exchange platforms that function without any geographical borders or regulatory oversight.
Kalkine Media is closely observing the impact of crypto assets in global investment scene in the wake of some recent developments.
Institutional players embrace crypto
Banks and major fintech companies are on the path to making cryptos a mainstream investment class.
JPMorgan has provided its clients access to Grayscale Investments’ funds and Osprey Funds. In total, the bank has allowed exposure to six crypto funds. Morgan Stanley also provides similar services. Canada became the first country in the world to approve and launch a Bitcoin ETF earlier this year.
S&P Dow Jones has launched cryptocurrency indices that track movement in prices of Bitcoin and Ether.
Regulators sound cautious, but not hostile
The Office of the Comptroller of the Currency (OCC) – a government agency that oversees compliance by all national banks – recognizes banks’ custody and safekeeping services for crypto assets.
Officials of the Fed and the SEC have talked about bringing crypto assets under regulatory oversight. SEC Chair Gary Gensler lately stated that Bitcoin could be a “catalyst for change”. Gensler pointed out that people have been “speculating on the value of gold” for millennia.
A change brews where global regulators are neither fully rejecting crypto assets nor embracing them. Amid this, top banks and digital payments giants are jumping onto the bandwagon. Gensler’s recent remarks were more inclined toward regulating the space instead of any hard-hitting approach.
Kalkine Media aims to study and analyze the emerging crypto asset class and at the same time provide insights on underlying risks and rewards. (www.kalkinemedia.com).