According to State Street, a major bank, institutional investors are unaffected by the current crypto winter and have retained an interest in blockchain technology and digital assets, as reported by Cointelegraph.
Irfan Ahmad, digital head of Asia-Pacific for the cryptocurrency arm of State Street Digital bank, pointed out that despite significant market volatility in June and July in an interview with Australian media outlet Sydney Morning Herald (SMH ) September 11th.
“During the June, July period where things really warmed up in terms of activity, we saw institutional clients not necessarily doubling down, but they weren’t really deterred from placing strategic bets on the class of assets itself.”
The Cboe Australia exchange listed three cryptocurrency exchange-traded funds (ETFs) from Cosmos Asset Management and 21Shares in May. Meanwhile, asset manager Monochrome just received approval to introduce the country’s first spot crypto ETF with an Australian financial services license in August, Cointelegraph noted.
The Cosmos Purpose Bitcoin Access ETF’s fund administrator is State Street, and Ahmad told SMH that more cryptocurrency product launches will be coming to Australia in the “very near future,” although he has no named no specific company.
“Certainly our customers have spoken to us in a more pragmatic way about how they might launch products or our future capabilities to help them support the launch of those products,” he said.
Meanwhile, stablecoins and the tokenization of traditional assets have captured the attention of the Australian Securities Exchange (ASX) and Australian banking behemoths like ANZ and NAB rather than particular cryptocurrency investments.
Due to regulatory ambiguity, Commonwealth Bank’s short-lived crypto trading service was permanently suspended in May. The Ether (ETH) institutional staking service was recently introduced by Swiss digital asset banking platform SEBA Bank on Sept. 7 to meet growing demand for yield-earning assets ahead of the merger, Cointelegraph said.
(With information from Cointelegraph)
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