Digital Assets are Institutional
Lakshmi Narayanan
Co-Founder
GreatX
Co-Founder
- Location: USA
The benefit of digital assets and the required infrastructure has been recognized by the top dogs.
According to a Goldman Sachs’ report, 20% of Coinbase’s trading volume in Q1 2018 was institutional. As of Q1 2021, that share increased to 78%. Putting it in perspective, trading volume for that period increased from $66M to $327M, respectively. Clearly, the past three years have brought about an institutional acceptance of digital assets and the crytpo market leading to its increased market capitalization.
Further, Arca Labs published a January 2022 survey of more than 100 global financial service professionals who stated 69% said their companies were focused on blockchain implementation and capital markets.
Looking at the top 5 banks by assets, each is focused on the sector. JP Morgan launched the Blockchain Center for Excellence that looks to develop and pilot solutions across the bank and has delivered the JP Morgan coin and Quorum blockchain. Bank of America invested in Paxos series D which provides blockchain infrastructure for same day settlement of stock trades. Wells Fargo started offering bitcoin and crypto exposure to high networth clients. Citigroup launched a digital assets unit creating 100 jobs to focus specifically on digital assets. U.S. Bank offers cryptocurrency custody services for institutional investment managers.
Crypto ETF’s have been approved and launched, the SEC continues to actively comment on the space, and the Wall Street Journal has crypto headlines weekly. All in all, 2022 has kicked off to show significant institutional growth of digital assets.
Disclaimer
This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. GreatX disclaims any obligation to update or revise any statements or views expressed herein.
In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. GreatX and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and GreatX and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
Further, Arca Labs published a January 2022 survey of more than 100 global financial service professionals who stated 69% said their companies were focused on blockchain implementation and capital markets.
Looking at the top 5 banks by assets, each is focused on the sector. JP Morgan launched the Blockchain Center for Excellence that looks to develop and pilot solutions across the bank and has delivered the JP Morgan coin and Quorum blockchain. Bank of America invested in Paxos series D which provides blockchain infrastructure for same day settlement of stock trades. Wells Fargo started offering bitcoin and crypto exposure to high networth clients. Citigroup launched a digital assets unit creating 100 jobs to focus specifically on digital assets. U.S. Bank offers cryptocurrency custody services for institutional investment managers.
Crypto ETF’s have been approved and launched, the SEC continues to actively comment on the space, and the Wall Street Journal has crypto headlines weekly. All in all, 2022 has kicked off to show significant institutional growth of digital assets.
Disclaimer
This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. GreatX disclaims any obligation to update or revise any statements or views expressed herein.
In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. GreatX and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and GreatX and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
About the Author
Lakshmi Narayanan
Co-Founder
GreatX
Co-Founder
Lakshmi Narayanan, the co-founder at GreatX, is a passionate investor and serial entrepreneur who in a span of 15 years has revolutionized the way real estate and asset management works. Lakshmi has founded and led several successful organizations and brought innovation at its finest, paving way for visionary ideas and products.
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