institutional investors
Anchorage Raises $350M to Expand Crypto Offerings
Paradigm Launches a Record $2.5B Crypto Fund
JPMorgan: Institutional Investors Dump Gold for Bitcoin Seeing It as Better Inflation Hedge
Global investment bank JPMorgan says institutional investors are returning to bitcoin, seeing the cryptocurrency as a better hedge than gold. The firm’s analysts describe three key drivers boosting the price of bitcoin in recent weeks, including assurances that U.S. policymakers will not ban cryptocurrencies. JPMorgan Sees Renewed Interest in Bitcoin JPMorgan published a research note […]Over Half of Global Institutional Investors Surveyed by Fidelity Now Have Exposure to Digital Assets
A new international survey from Fidelity Digital Assets indicates a growing acceptance of crypto among institutional investors around the world. Fidelity surveyed 1,100 respondents from the United States, Europe, and Asia. They represented financial advisors, high-net-worth investors, family offices, crypto hedge funds, venture capital funds, traditional hedge funds, pension funds, defined-benefit plans, endowments, and foundations. […]
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Hedge Fund Brevan Howard Expands Crypto Business — Expert Hired to Lead New Digital Asset Unit
Brevan Howard, a European hedge fund management company, has said it will be expanding its crypto business. BH Digital, which is the hedge fund’s recently created unit, is expected to “manage its cryptocurrency and digital assets.” Growing Interest in Crypto From Hedge Funds In addition to creating BH Digital, Brevan Howard, according to a Reuters […]Microstrategy Adds to Bitcoin Stash, Now Holds $5.1B
Institutional investors dominated the DeFi scene in Q2: Chainalysis report
Big-money players accounted for the majority of transactions in the decentralized finance crypto market in Q2 2021.
The DeFi market appears to no longer be the domain of retail actors alone as the institutional investment footprint in the crypto market segment continues to attain more significant levels.
According to blockchain intelligence firm Chainalysis, institutional investors played a major role in decentralized finance (DeFi) adoption in Q2 2021.
In its soon-to-be-released “Global DeFi Adoption Index” report, Chainalysis stated:
“Large institutional transactions, meaning those above $10 million in USD, accounted for over 60% of DeFi transactions in Q2 2021, compared to under 50% for all cryptocurrency transactions.”
Indeed, DeFi has become a major draw for big-money players in recent times with banks and financial institutions beginning to commit funds to the crypto market segment.
The trend likely signifies a diversification of interest from offering Bitcoin-related investment products with large-cap investors looking to tap into the expanding DeFi scene.
The preview report by Chainalysis also showed a widening dichotomy in the adoption metrics for DeFi and the broader crypto market. While emerging markets continue to show greater adoption of legacy crypto assets like Bitcoin (BTC), DeFi activity is reportedly being driven by institutional players in major economies.
Related: DeFi literacy: Universities embrace decentralized finance education
Meanwhile, regulators are increasingly focusing on the DeFi market with the United States Securities and Exchange Commission (SEC) recently launching an investigation into Uniswap — the largest decentralized exchange in the ecosystem.
Stricter monitoring protocols targeted at the DeFi market has been a major talking point for regulators in major economies. Back in August, SEC chairman Gary Gensler identified DeFi as being among seven crypto-related policy issues for the Commission.
Gensler has also previously argued against the decentralized nature of DeFi protocols stating that many platforms are “highly centralized” and will require licensing from the authorities.
The DeFi market’s surge since July has been somewhat punctuated by the recent price declines with the market’s nominal total value locked slipping below the $100 billion mark.
Galaxy Digital backs $50M funding round for crypto staking outfit Figment
The crypto staking service platform is now worth over $500 million and could be looking to expand staff strength and business operations.
Mike Novogratz’s investment management firm Galaxy Digital has reportedly participated in a $50 million funding round for Figment, a crypto staking startup.
According to Bloomberg on Monday, Galaxy Digital joined investors like Anchorage and Bonfire Ventures in a Series B funding round led by Senator Investment Group and Liberty City Ventures.
The company is now reportedly worth about $500 million following the fresh injection of investment capital.
Commenting on the funding round, Lorien Gabel, CEO of Figment, said that the funding marks a “new chapter” for the firm.
The announcement also included a quote from Novogratz describing the yield generating potential of proof-of-stake (PoS) as an “important catalyst” in incentivizing greater institutional interest in digital assets.
PoS is an alternate consensus protocol to proof-of-work that replaces the computational requirements for transaction validation in the latter with a system based on the validator’s stake in the network.
Indeed, Figment reportedly stakes more than $7 billion worth of digital assets for over 100 institutional clients and is looking to upscale its workforce to further expand its business operations.
Related: JPMorgan report: Eth2 could kick-start $40B staking industry by 2025
Novogratz’s comments about PoS driving institutional adoption of digital assets are already playing out in the crypto space. Companies like European telecom giant Deutsche Telekom are involved in the cryptocurrency staking arena.
As previously reported by Cointelegraph, Deutsche Telekom recently tapped Coinbase Custody as the preferred custodian of its staked Celo (CELO) tokens. Indeed, the company is also a validator on the Celo network via its T-Systems MMS subsidiary.
Back in July, Swiss-licensed digital asset bank Sygnum became the first bank to offer Ethereum 2.0 staking services to institutional clients. Indeed, Ethereum’s transition to PoS has been tipped to have profound implications for the emerging “Staking as a Service” market.
UK’s Standard Chartered to Offer Crypto Brokerage Services in Ireland
British bank Standard Chartered will offer cryptocurrency broker services in Ireland through its Zodia Custody subsidiary. The digital asset custodian will focus on signing up institutional investors in the Republic which has become a European base for many financial institutions and crypto companies. Standard Chartered to Provide Crypto Custody to Institutions in Ireland Zodia Custody, […]