Investors are increasingly seeking exposure to bitcoin after the price increase in recent months. Bitcoin exchange-traded products see record trading volumes. Meanwhile, more major banks are reportedly trying to get into the crypto space, including Goldman Sachs.
High demand for Bitcoin and Crypto products
With the price of bitcoin rising rapidly in recent months, more investors are seeking exposure to the cryptocurrency. Bitcoin’s price is up about 24% since the beginning of the year and well over 90% since the beginning of December.
A bitcoin exchange-traded product in particular, BTCE, recorded an average daily trading volume of $ 69 million in the first 11 days of January, the Financial Times reported Friday, citing data from Deutsche Börse where it trades. Switzerland’s main stock exchange this week revealed that its crypto trading volume hit a record high of $ 1.2 billion in 2020. The exchange now lists 34 crypto exchange-traded products.
Grayscale Investments’ Bitcoin Trust posted average daily sales of nearly $ 1 billion in the first two weeks of this year, more than nine times the 2020 average, the publication said. The bitcoin trust’s assets under management grew from $ 1.8 billion to $ 17.5 billion during the year.
Meanwhile, Canadian asset manager 3iq says its bitcoin fund has hit a milestone, more than a billion Canadian dollars ($ 785 million) in assets under management. In addition to the bitcoin fund, the company offers the ether fund and a global crypto asset fund.
Big banks want it, including Goldman Sachs
While bitcoin outperforms other assets, more large companies are trying to enter the crypto space. Investment bank Goldman Sachs recently said the bitcoin market is on the rise more mature. Rumor has it that the bank has issued a Request for Information (RFI) to investigate whether digital custody of assets can be offered.
The RFI was reportedly sent to a prominent company in the crypto-custody niche late last year. An unnamed source from Goldman Sachs indicated that the company is in talks with several companies focused on custody services.
Recently, the US Office of the Comptroller of the Currency (OCC) has granted clearance Anchorage conditional approval to become a national digital bank. Anchorage co-founder Diogo Mónica told CNBC last week that the regulatory approval will attract many major institutional players to offer their own crypto services, including custody.
Other banks and financial services firms that have recently entered the crypto space include Spain’s second largest bank BBVA, Standard Chartered Bank, The largest bank in Southeast Asia DBS, and Italian insurance giant Generali. Some of them only provide crypto custody services, while others also offer bitcoin trading services.
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