According to a bank employee, corporate clients did not give up strategic bets on the digital asset class

State Street denies the leaving of institutional investors from the crypto market

12.09.2022 - 10:40

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2 min

What’s new? Institutional investors at State Street, the second-oldest bank in the US, are not worried about the current crypto winter and remain interested in blockchain and digital assets. Irfan Ahmad, the digital lead for Asia Pacific at State Street Digital, stressed that despite the strong volatility in June and July, the bank’s corporate clients did not give up their strategic bets on the asset class itself. This is reported by The Sydney Morning Herald (SMH), an Australian news outlet.

Material by SMH

What else did Ahmad report? The digital lead noted the move by investment bank Goldman Sachs to launch bitcoin-backed loans. According to Ahmad, other big institutional players are also likely to take further steps in the crypto space.

He also commented on a warning to retail investors about the risks of investing in cryptocurrencies from the Australian Securities and Investments Commission (ASIC). Ahmad believes that a concerted effort to develop regulatory safeguards to protect investors could be a key silver lining amid the recent decline in cryptocurrencies.

State Street is the fund administrator for the Cosmos Purpose Bitcoin Access ETF in Australia. Ahmad said that new cryptocurrencies are expected to launch in the Asia-Pacific region, including Australia, in the near future, but he did not provide details.

State Street is part of the Federal Reserve System (Fed) and is one of 29 global systemically important banks. It is headquartered in Boston, Massachusetts. State Street Corporation has $4,14 trillion in assets under management.

Earlier, HANetf conducted a survey among European asset managers and financial advisors, according to which 75% of respondents would increase their investments in cryptocurrency within 12 months. In this, bitcoin became the most preferred coin.

In September, the CEO of financial advisory firm deVere Group, Nigel Green, noted that the number of addresses of large bitcoin holders increased by 103 in the last 30 days. According to him, the activity of large BTC investors demonstrates their desire to return to the crypto market.

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