The Resilience of Institutional Investors
Michael Demissie, the head honcho for digital assets at BNY Mellon, firmly believes that despite the cryptocurrency market crash in 2022, institutional investors are still all-in on digital assets. Speaking at a recent conference hosted by Afore Consulting, he declared the digital asset industry is undeniably “here to stay.” This statement came with a notable sense of confidence that could even make the most seasoned poker player raise an eyebrow.
Survey Says: Strong Interest in Blockchain
Backing his convictions, Demissie referenced a revealing survey conducted by BNY Mellon in October, which highlighted some eye-catching statistics. According to the survey, 91% of custodian bank clients expressed interests in blockchain-based tokenized products. In a world where everyone seems focused on short-term gains, it appears that 86% of institutional players are adopting a “buy and hold” strategy, indicating a belief in the long-run potential of digital currencies.
Weathering the Crypto Winter
While many investors scurried for cover during the 2022 market downturn, a staggering 88% of those surveyed claimed that this seismic shift hasn’t altered their investment plans in the digital asset arena. So, while the crypto world might resemble a winter wonderland, it seems institutional players are just bundled up and ready to wait for spring.
Need for Regulatory Clarity
Yet, all is not rosy in the digital asset garden. Demissie emphasized the need for greater regulatory clarity from Washington D.C. “We absolutely need clear regulations and rules for the road,” he stressed, advocating for the importance of trustworthy services that protect investor interests. Striking a balance between innovation and regulation remains a critical challenge for all players involved.
The Shift Towards Leadership
On a brighter note, BNY Mellon recently brought Caroline Butler on board as the new CEO of Digital Assets. With a decorated history as CEO of custody services, Butler will spearhead the bank’s initiatives to accelerate the adoption of digital assets when she isn’t busy wondering how to get a cat meme to go viral.
Big Banks Eye Digital Asset Landscape
BNY Mellon isn’t the only major player in the digital asset game. Goldman Sachs expressed interest in scooping up cryptocurrency firms weighted down by FTX’s infamous collapse in November. Meanwhile, despite Jamie Dimon’s well-known skepticism about Bitcoin, JPMorgan hasn’t stayed away from blockchain entirely – they recently completed their first cross-border transaction with DeFi on a public blockchain. It seems like even the most ardent skeptics can’t resist the potential of this burgeoning space.
Conclusion: A Long-Term Game
In conclusion, while cryptocurrency volatility might have sent shivers down many investors’ spines, institutional interest appears steadfast. With evolving leadership, burgeoning regulations, and substantial investment strategies in place, it looks like the digital asset movement is gearing up for a long-lasting rise, with or without the inevitable hiccups along the way.
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