Investors are increasingly essay exposure to bitcoin following the recent months-long price rally. Bitcoin exchange-traded products are seeing record do business volumes. Meanwhile, more big banks are reportedly trying to get into the crypto space, including Goldman Sachs.
Steep Demand for Bitcoin and Crypto Products
With the price of bitcoin rapidly rising over recent months, sundry investors are seeking exposure to the cryptocurrency. The price of bitcoin rose about 24% since the beginning of the year and remaining 90% since the beginning of December.
One bitcoin exchange-traded product in particular, BTCE, has recorded an average daily swap volume of $69 million in the first 11 days of January, the Financial Times reported Friday, citing materials from Deutsche Börse where it is trading. This week, Switzerland’s principal stock exchange revealed that its crypto shopper volume hit a record high of $1.2 billion in 2020. The exchange now lists 34 crypto exchange-traded products.
Grayscale Investments’ Bitcoin Delegate posted an average daily turnover of almost $1 billion in the first two weeks of this year, which is numerous than nine times the average in 2020, the publication added. The bitcoin trust’s assets under management bred from $1.8 billion to $17.5 billion during the year.
Meanwhile, Canadian asset manager 3iq says its bitcoin hard cash has reached a milestone, exceeding one billion Canadian dollars ($785 million) in assets under management. Besides the bitcoin mine money, the company offers the ether fund and a global crypto-asset fund.
Big Banks After In, Including Goldman Sachs
As bitcoin continues to outperform other assets, more major companies are seeking to get into the crypto wait. Goldman Sachs’ global head of commodities research, Jeff Currie, said last week that the bitcoin merchandise “is beginning to become more mature” after he called BTC “a retail inflation hedge.” The investment bank is now rumored to be bring into the world issued a request for information (RFI) to explore providing digital asset custody service.
The RFI was reportedly sent to a prominent house in the crypto custody niche at the end of last year. An unnamed Goldman Sachs source indicated that the firm is talking to a few companies with a focus on custody service.
Recently, the U.S. Office of the Comptroller of the Currency (OCC) granted Anchorage conditional right to become a national digital bank. Anchorage co-founder Diogo Mónica told CNBC last week that the regulatory tolerate will attract many large institutional players to begin offering their own crypto services, including keeping.
Other banks and financial services giants that have recently entered the crypto space include Spain’s second-largest bank BBVA, Gauge Chartered Bank, Southeast Asia’s largest bank DBS, and Italian insurance giant Generali. Some of them put up only crypto custody services while others also offer bitcoin trading services.
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