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Avalanche of Institutional Capital Enters Crypto Markets in Fourth Straight Week of Inflows: CoinShares

Avalanche of Institutional Capital Enters Crypto Markets in Fourth Straight Week of Inflows: CoinShares

Digital assets manager CoinShares says institutions poured $598 million into crypto investment products last week for a fourth consecutive week of inflows. In its latest Digital Asset Fund Flows report, CoinShares says that year-to-date inflows for crypto investment products are nearing the $6 billion mark. “Digital asset investment products saw weekly inflows totaling US$598m, marking the […]

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Analyst Says XRP and One Ethereum Rival Flashing Bullish Signal, Updates Outlook on Bitcoin (BTC)

Institutions Pour All-Time Record $2,450,000,000 of Capital Into Crypto ETPs in One Week; CoinShares

Institutions Pour All-Time Record ,450,000,000 of Capital Into Crypto ETPs in One Week; CoinShares

Digital assets manager CoinShares says institutions poured $2.45 billion into crypto investment products last week, the largest weekly inflow ever recorded. In its latest Digital Asset Fund Flows report, CoinShares says that crypto investment products’ assets under management (AUM) are now at their highest level since December 2021. “Digital asset investment products saw record weekly inflows, […]

The post Institutions Pour All-Time Record $2,450,000,000 of Capital Into Crypto ETPs in One Week; CoinShares appeared first on The Daily Hodl.

Analyst Says XRP and One Ethereum Rival Flashing Bullish Signal, Updates Outlook on Bitcoin (BTC)

Ethereum and Cardano Lead Institutional Altcoin Inflows As $1,100,000,000 Hits Crypto ETPs: CoinShares

Ethereum and Cardano Lead Institutional Altcoin Inflows As ,100,000,000 Hits Crypto ETPs: CoinShares

Digital assets manager CoinShares says institutions poured $1.1 billion into crypto investment products one month after the U.S. Securities and Exchange Commission (SEC) approved spot BTC exchange-traded funds (ETFs). In its latest Digital Asset Fund Flows report, CoinShares finds that crypto investment products saw over a billion dollars in inflows last week and show no signs […]

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Analyst Says XRP and One Ethereum Rival Flashing Bullish Signal, Updates Outlook on Bitcoin (BTC)

Coinbase narrows loss while crypto trading volumes fall in Q3

Despite seeing falling trading volumes, Coinbase said they were “pleased” with how the quarter played out.

Cryptocurrency exchange Coinbase narrowed its net loss to $2 million in the third quarter, as notched a year-on-year increase in revenue despite lower trading volumes.

The firm’s net loss in Q3 was trimmed from a $545 million net loss in the prior year period, according to a Nov. 2 earnings statement.

Total revenue increased 14.2% year-on-year to $674.1 million, though quarter-on-quarter revenue fell 4.8%. The figure beat London Stock Exchange Group’s estimate of $653.2 million, according to a report from Reuters.

Of the total revenue, $334.4 million came from subscription and services (mostly stablecoin and blockchain rewards), while $288.6 million came from transaction-based revenues.

Meanwhile, consumer trading volume came in at $11 billion, a fall from $26 billion in Q3 2022.

Institutional trading volumes came in at $65 billion, down from $78 million in Q2 and $133 million in Q3 2022.

These volumes have been trending downwards for five consecutive quarters.

Despite this, Coinbase said in a statement it was pleased with how the quarter played out:

“Q3 was a strong quarter for Coinbase. Amid multi-year low levels of volatility, we are pleased with our financial results.”

The exchange also produced a positive adjusted EBITDA for the third consecutive quarter — a sign that they’re building toward a “sustainable business” that can drive “long term growth,” it said.

Adjusted EBITDA stands for earnings before interest, taxes, depreciation and amortization and is a metric that provides analysts a means to  make more meaningful comparisons to a variety of companies in the same industry. 

Related: Coinbase launches regulated crypto futures services for US retail traders

Coinbase’s revenue statement for Q3 2023. Source: Coinbase

Coinbase’s share price (COIN) spiked 8.7% to $84.6 during trading hours but then fell 3.7% to $81.5 in after-hours trading,following the results filing, according to Google Finance.

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Analyst Says XRP and One Ethereum Rival Flashing Bullish Signal, Updates Outlook on Bitcoin (BTC)

Europe drives institutional crypto adoption: Blockchain Expo Amsterdam

Conversations with key speakers at the Blockchain Expo Europe in Amsterdam suggest that cryptocurrency exchanges and companies see the continent as a key region for growth.

Europe remains fertile ground for the cryptocurrency ecosystem to flourish in comparison to harsher regulatory environments, according to prominent speakers at this year’s Blockchain Expo in Amsterdam.

Cointelegraph attended the convention held at the RAI conference center for the second year running, with the Blockchain Expo forming part of the larger Tech Expo event being hosted in the Netherlands.

The event has typically attracted prominent mainstream industry players from the financial world to showcase how blockchain technology is being leveraged to power innovative new products and solutions across a myriad of industries.

From finance, logistics, healthcare and marketing, blockchain technology and Web3 functionality continues to be a key growth area for different industry players.

MiCA bodes well for institutional adoption

Regulatory matters remain front and center, as was evident in a fireside chat featuring Coinbase institutional sales co-head James Morek and Zodia Markets co-founder Nick Philpott.

Trendmaster co-founder Chris Uhler, Zodia Markets co-founder Nick Philpott and Coinbase co-head of EMEA and APAC institutional sales James Morek onstage in Amsterdam. Source: Cointelegraph

Philpott, who established the institutional-grade cryptocurrency trading platform, described the European Union’s Markets in Crypto-Assets (MiCA) regulation as a progressive regulatory measure to guide the growth of the sector while protecting users.

“Institutions feel more comfortable knowing that there is a framework within which they can operate, which is at odds with what is happening in countries like America.”

Philpott’s reference to the United States’ regulatory landscape centered on the cloud of uncertainty that hangs over the cryptocurrency ecosystem. This has been primarily driven by the Securities and Exchange Commission’s separate enforcement actions against key industry players, including Coinbase, Ripple and Binance.US, for alleged securities violations.

Morek, who heads up Coinbase’s institutional sales in the EMEA and APAC regions, also highlighted the establishment of clear regulatory parameters across the EU and in the United Kingdom which have helped crypto-related firms continue to do business.

Off-the-record conversations also suggest that major players like Coinbase continue to attract interest from institutional clients looking to gain exposure or custody of certain cryptocurrencies outside of the U.S.

Related: EU’s new crypto law: How MiCA can make Europe a digital asset hub

This includes a myriad of potential clients, ranging from traditional fund managers, large corporates, private banks and a variety of businesses. Morek told Cointelegraph that Coinbase currently serves over 1300 institutional customers globally.

Legal frameworks that have long allowed companies to have both onshore and offshore entities continue to be an important element in allowing cryptocurrency exchanges and companies to offer services in different jurisdictions.

Philpott also highlighted the United Arab Emirates as a fast-growing crypto and Web3 hub that is actively looking to attract the biggest firms in the industry. The likes of Binance have already established a foothold in the UAE, while Coinbase was reportedly exploring setting up a base of operations in the jurisdiction earlier in 2023.

A tokenized future

Tokenization also remains a drawcard for a variety of institutions, including mainstream banks and financial firms looking to issue and manage debt and investments.

Cointelegraph also spoke to Martijn Siebrand from Dutch bank ABN AMRO. Siebrand is the bank’s digital assets ecosystem manager and he shared insights into ABN AMRO’s recent issuance of a digital green bond that made use of Polygon’s layer-2 Ethereum scaling technology to raise 5 million euros ($5.3 million).

ABN AMRO's Martijn Siebrand fields questions from the crowd during his presentation on day one of the conference.

Siebrand said that blockchain technology is proving to be a useful tool for banks to better serve capital markets:

"It's funny, if we have now talks within the bank, people say capital markets have been there for a long time already yet we haven't seen many innovations. This could be one major change where a lot of banks are investing in."

Siebrand added that ABN Amro is already showcasing its blockchain-based digital bond exploits at conferences and exhibitions to both capital market players like mainstream banks as well as private companies looking to raise funds:

“We see two tracks. We have the institutional one serving traditional capital markets. But we also have the chance to help clients that are too big for crowdfunding but too small for capital markets.”

Siebrand added that tokenized debt offerings can be useful for companies that want to avoid selling equity. However, jurisdictional regulatory frameworks need to be further developed before ABN AMRO can create a working roadmap to further its blockchain tokenization offerings:

“We think that private markets involving private issuances, which are one-on-one or with two or three investors, that will be easier to to scale than the institutional one.”

NFTs remain valuable for institutions

Mia Van, Mastercard’s EMEA blockchain and digital assets, delved into the value that nonfungible tokens (NFTs) present for institutional users. The sector has produced $1.9 billion in sales volumes over the past year according to Van, with the average number of Web3 wallets increasing despite sellers dominating NFT marketplaces in recent months.

According to Van, luxury brands such as Breitling and Louis Vuitton are actively using NFTs to provide digital twins of items that also prove their provenance. Meanwhile, mainstream brands like Adidas and Nike continue to explore NFTs and metaverse activations that give users ownership of objects in both the physical world and metaverse environments.

Related: NFT-styled debit cards the future of Web3 — Animoca founder on $30M Hi investment

Mastercard is also becoming part and parcel of the Web3 ecosystem. Earlier this year, Animoca Brands announced a $30 million investment in neobank platform Hi. A unique offering of the platform is a customizable NFT-styled crypto debit card. Users can stylize their Mastercards with NFTs they digitally own - allowing one to potentially show off that prize Bored Ape in the physical world.

Van would not be drawn to comment on Mastercard’s blockchain and digital asset strategy and partnerships.

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Analyst Says XRP and One Ethereum Rival Flashing Bullish Signal, Updates Outlook on Bitcoin (BTC)

Institutions Pour $742,000,000 Mostly Into Bitcoin in Largest Run of Inflows Since 2021: CoinShares

Institutions Pour 2,000,000 Mostly Into Bitcoin in Largest Run of Inflows Since 2021: CoinShares

Digital assets manager CoinShares says institutional investors are increasing their conviction in Bitcoin (BTC) and crypto more than they have since 2021, with a massive allocation in recent weeks. In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional investors poured $137 million into the crypto markets last week, continuing a four-week run of […]

The post Institutions Pour $742,000,000 Mostly Into Bitcoin in Largest Run of Inflows Since 2021: CoinShares appeared first on The Daily Hodl.

Analyst Says XRP and One Ethereum Rival Flashing Bullish Signal, Updates Outlook on Bitcoin (BTC)

Institutions Pour Capital Into Bitcoin and Altcoins, Creating Positive Net Flows for 2023: CoinShares

Institutions Pour Capital Into Bitcoin and Altcoins, Creating Positive Net Flows for 2023: CoinShares

Digital assets manager CoinShares says institutional investors are bullish on Bitcoin (BTC) and altcoins as crypto sees over $120 million in inflows last week. In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional investors poured $125 million into the crypto markets last week, the second week of significant inflows in a row. […]

The post Institutions Pour Capital Into Bitcoin and Altcoins, Creating Positive Net Flows for 2023: CoinShares appeared first on The Daily Hodl.

Analyst Says XRP and One Ethereum Rival Flashing Bullish Signal, Updates Outlook on Bitcoin (BTC)

$27 trillion AUM is perched over Bitcoin and crypto: CoinShares CSO

The top eight financial institutions with an interest in Bitcoin and crypto have a whopping $27 trillion in combined assets under management.

There is at least $27 trillion of assets managed by major U.S. financial institutions that are also “actively” seeking to provide clients with exposure to Bitcoin (BTC) and crypto. 

On June 26, CoinShares chief strategy officer Meltem Demirors highlighted at least eight major financial institutions that have signaled moves in the digital assets space, including BlackRock’s spot Bitcoin ETF filing and Fidelity’s crypto wealth management solutions.

Others include JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco and Bank of America.

“Many of the largest financial institutions in the US are actively working to provide access to Bitcoin and more,” she noted, adding that there is a whopping $27 trillion in assets under management between them.

Earlier this month, BlackRock’s June 16 spot Bitcoin exchange-traded fund application led to a wave of filings for similar products, boosting a narrative that suggests “institutions are coming” for Bitcoin.

BTC price reached a 2023-high of $31,185 on June 24 amid surging confidence, according to CoinGecko.

Demirors however noted that while "the institutions are coming,” it’s still more of a trickle than a wave. "We're seeing the bridges being built in real-time," she added.

It should be noted that the $27 trillion figure is an estimation of the total assets under management across the eight institutions and only a tiny portion of this would likely be allocated to crypto investments.

Nevertheless, Reflexivity Research co-founder, Will Clemente, still echoed Demiror’s sentiment, pointing out that Bitcoin’s market capitalization is less than $600 billion.

“Between HSBC, Blackrock, Fidelity, and Schwab we are talking about $25 trillion in assets under management that will soon be enabled to buy Bitcoin.”

Institutional investors are already showing more interest in Bitcoin-related funds. The ProShares Bitcoin Strategy ETF (BITO) saw its largest weekly inflow for a year pushing AUM over $1 billion, as reported by Cointelegraph.

Related: BlackRock’s Bitcoin ETF ‘is the best thing to happen’ to BTC, or is it?

Earlier this week, Federal Reserve Board of Governors member Michelle Bowman criticized the absence of a crypto regulatory framework claiming that the uncertainty over the asset class traps institutions in a “supervisory void.”

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

Analyst Says XRP and One Ethereum Rival Flashing Bullish Signal, Updates Outlook on Bitcoin (BTC)

Fidelity, Charles Schwab, Citadel and More Back Newly Launched Crypto Exchange

Fidelity, Charles Schwab, Citadel and More Back Newly Launched Crypto Exchange

A group of the biggest financial institutions in the world are backing the newly launched digital asset marketplace EDX Markets (EDX). According to a new press release, the company received a round of funding from financial heavyweights including Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital, and Virtu Financial. The funding will “support […]

The post Fidelity, Charles Schwab, Citadel and More Back Newly Launched Crypto Exchange appeared first on The Daily Hodl.

Analyst Says XRP and One Ethereum Rival Flashing Bullish Signal, Updates Outlook on Bitcoin (BTC)

Investors want crypto, but not without TradFi backing: Nomura survey

A Nomura Laser Digital survey has revealed the majority of institutional investors polled are still keen on crypto.

Professional investors are still keen on crypto but want to see backing from large traditional financial institutions before taking the plunge themselves, a survey from Nomura’s digital asset arm has revealed.

Institutional investor interest in crypto has stalled in recent weeks due to increasing regulatory uncertainty in the United States and its regulatory crackdown on the wider industry.

In the Laser Digital Investor Survey conducted in April, 90% of professional investors polled said that it was important to have the backing of a “large traditional financial institution” for any crypto asset fund or investment vehicle before they or their clients would consider putting money into it.

However, a whopping 96% of them regarded digital assets as “representing an investment diversification opportunity” in addition to traditional asset classes such as fixed income, cash, equities, and commodities.

Industry observers have predicted an increase in institutional investment following the BlackRock spot ETF application. 

Furthermore, 82% of the professional investors interviewed were optimistic about the crypto asset class in general over the next 12 months. They specifically mentioned Bitcoin (BTC) and Ethereum (ETH) with almost half of the respondents regarding the pair as the foundation of the Web3 economy and a “long-lasting source of investment opportunities.”

Dr. Jez Mohideen, CEO of Laser Digital said the study shows that institutional investors see a “clear role for digital assets in the investment management landscape and the benefits they can bring, such as greater diversification of portfolios.”

However, around three-quarters of them said “legal or regulatory restrictions” could prevent their firms or clients from investing in crypto-related funds or products.

Following the collapse of FTX in November, global regulators have come down hard on the digital asset sector but many countries are actively rolling out regulations for the new asset class.

Laser Digital carried out an independent global survey with institutional investors across 21 countries in Europe, the Middle East, Asia, South Africa, and Latin America.

More than 300 institutional investors with collective assets worth $4.9 trillion including wealth managers, pension funds, hedge funds, investment funds, and insurance asset managers were polled.

Related: Institutions ‘extremely interested’ in crypto ETFs, but buying has cooled: Survey

Nomura established its crypto venture arm Laser Digital in September 2022.

The Japanese banking giant subsidiary is focusing on Asia for the next crypto industry growth spurt. On June 13, Mohideen said regulatory clarity in Japan and Hong Kong would boost retail participation.

“Asia benefitted from what happened in the US and realized the things they need to avoid,” he said.

Magazine: Korean crypto contagion, Bank of China on Ethereum, HK’s exchange red carpet: Asia Express

Analyst Says XRP and One Ethereum Rival Flashing Bullish Signal, Updates Outlook on Bitcoin (BTC)