Standard Chartered, a major financial banking giant, has announced its plans to establish a trading desk for Bitcoin (BTC) and Ethereum (ETH) in London. This move aligns with the growing trend of institutional adoption of cryptocurrencies, which has the potential to drive prices higher.
Standard Chartered, a billion-dollar banking giant, is nearing the launch of a trading desk in London specifically designed for Bitcoin (BTC) and Ethereum (ETH). The bank aims to expose its institutional clients to the crypto industry starting with these two popular digital assets.
This decision follows in the footsteps of Goldman Sachs Group Inc., which has been trading cryptocurrency derivatives for several years. However, the implementation of this venture has been subject to strict regulations, including the Basel Committee on Banking Supervision proposing a 1,250% risk weighting for any unhedged exposure to cryptocurrencies.
In a comprehensive email statement, Standard Chartered stated that the initiative was driven by the demand from institutional clients. The bank has been working closely with regulators to facilitate the trading of Bitcoin and Ethereum, as part of its strategy to support clients across the broader digital asset ecosystem, including access, custody, tokenization, and interoperability.
Blockchain researcher Collin Brown emphasized the significance of this move in terms of mainstream financial adoption of digital assets. This development represents a major milestone in the integration of digital assets into traditional financial systems.
Institutional investors have played a crucial role in driving up cryptocurrency prices. This has been evident with the introduction of Bitcoin spot ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) has accumulated over $20 billion, making it the largest Bitcoin fund. Collectively, Bitcoin ETFs have amassed over $50 billion, making them the best-performing ETF product in history.
According to CNF, Spot Bitcoin Exchange Traded Funds (ETFs) experienced five consecutive days of outflow after accumulating $4 billion in just 19 days. However, due to the struggling prices since reaching an all-time high of $74,300 in March, the digital asset has been unable to maintain a bullish momentum. Over the past few months, the largest cryptocurrency has been trading within the price range of $65,000 to $72,000.
The approval of an ether spot ETF in the coming weeks is expected to drive further institutional adoption. Consensys, a blockchain software technology company, has predicted that the SEC could approve S-1 filings for spot Ethereum Exchange Traded Funds (ETFs) in a matter of days. Blockchain researcher Collin Brown believes that this prediction is a bullish signal for Ethereum, the second-largest cryptocurrency. Bloomberg ETF analyst Eric Balchunas has revised his prediction, suggesting that Ethereum ETFs could begin trading as early as July 2. This development could attract attention to the second-largest cryptocurrency and push prices to new all-time highs.
Currently, Bitcoin (BTC) is trading at $64,100, experiencing a 3.8% drop last week. Ethereum (ETH) is trading at $3,474, also suffering a setback with a 3.1% drop last week.
With the increasing institutional adoption of cryptocurrencies and more financial giants offering crypto-related services, prices are expected to continue to be positively influenced, ensuring long-term prosperity.
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