- State Street is the fund administrator of the Cosmos Purpose Bitcoin Access ETF, launched in May.
- The crypto unit of the bank has continued to see the interest of customers even in the midst of the crypto downturn.
Global banking giant State Street says institutional investors are not sweating the cryptocurrency’s continuation.
Even as the crypto industry navigates the unforgivable downturn that characterizes the 2022 market, the US lender says investors are largely adamant – indeed pointing to the incredible interest in cryptocurrency and the underlying blockchain technology. We do.
Institutional clients continue to view crypto as an asset class
According to Irfan Ahmed, crypto lead at State Street Digital for Asia Pacific, the summer events have greatly dampened the appetite of investors for digital assets. While the period was generally quiet, as the analyst notes, the massive volatility to propel bitcoin below $20k hasn’t really swiped sentiment.
Ahmed told Sydney Morning Herald With the June-July craziness rising bets on crypto, the crypto entity of State Street saw institutional clients making moves. He says adamant clients “kept making strategic bets on the asset class itself.”
In his view, all of these tricks have a “takeaway”: “I think there’s a perception that the asset class is here to stay”, he noted. Given this scenario, State Street Digital as an asset servicer believes that it is the right thing to do to provide clients with services tailored to their investment ambitions.
While there are steps on product launches or partnerships that support certain blockchain projects, he said State Street is looking to add to its crypto products in the region. Already, the banking giant has tied up with a physically-backed bitcoin exchange-traded fund (ETF) for the first time in Australia.
This is because the bank is the fund administrator of the Cosmos Purpose Bitcoin Access ETF, a product that was launched in May 2022 at Cboe Australia.
Microstrategy to buy more bitcoins
On Friday last week, it was revealed that MicroStrategy, the world’s largest corporate holder of bitcoin (BTC), was looking to sell its stock and use the funds to buy the cryptocurrency.
Indeed, the software intelligence company filed for a potential sale of $500 million worth of its Class A shares with the US Securities and Exchange Commission (SEC).
MicroStrategy’s move is by no means indicative of the sentiment of institutional buyers, most of whom hold a long-term bullish view of crypto and blockchain.