NFT Deposits and Withdrawals are Now Live on FTX US for Institutional Favorite Solana (SOL)

NFT Deposits and Withdrawals are Now Live on FTX US for Institutional Favorite Solana (SOL)

Cryptocurrency exchange FTX.US has launched the non-fungible (NFT) marketplace for Solana-based NFTs.

“NFT deposits/withdrawals live on FTX US for Solana!” announced FTX CEO Sam Bankman Fried late on Monday.

While currently limited to Solana-based NFTs, soon FTX.US will also add support for Ethereum-based NFTs.

The buying and selling of NFTs on FTX.US’s marketplace have been limited to those minted directly on the website before this launch. Additionally, the Solana-based collection didn’t have an established marketplace either, with the majority of them being traded on Digital Eyes and Solanart.

But now, FTX has joined in to “provide both US and global users with a regulated marketplace that is intuitive and responsive to their needs,” FTX.US president Brett Harrison said in a statement.

“We’re live!” announced Harrison on Twitter while noting that both “buy now” and auction options are supported on the platform. In case your NFT isn’t verified, FTX will also verify the authenticity of your NFT.

While there is no listing fee on FTX.US, the platform will charge a 2% exchange fee from the seller plus creator royalties.

All the NFTs will be listed in SOL. So, to get started, the user has to fund their exchange wallet with crypto or US dollar to get some SOL tokens.

Solana has actually become a favorite among institutional investors, with $12.5 million of inflows recorded in SOL investment products last week. Overall, this year, Solana has seen $96 million in inflows, bringing its AUM to $119 million — the fifth largest after Bitcoin, Ethereum, Multi-asset, and Binance, according to CoinShares.

On Monday, derivatives platform FTX also increased its instant Signet transfers to allow 10 million per day in withdrawals and deposits to be auto-credited. Earlier this month, the rapidly growing exchange had integrated Signature Bank’s instant Signet deposits and withdrawals for institutions with initial rollout limiting withdrawals to 100k/day.

In other news, CEO Bankman-Fried is stepping down from quant trading firm Alameda Research to focus on crypto exchange FTX. Sam Trabucco and Caroline Ellison will now head Alameda Research as co-CEOs.

The crypto trading behemoth, which made a $1 billion profit last year, is involved in investments, trading, market-making, and yield farming in the crypto space.

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Author: AnTy

Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors

Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors

Solana has been one of the most talked-about projects in the crypto space this week, and it doesn’t appear to be slowing down. In the latest show of adoption, an institutional investment firm has opened a new Fund for the company’s SOL token.

Big Expansion for Osprey

According to an official press release shared on Thursday, Osprey Funds has launched an SOL-based Trust product for private placement. The press release confirmed that the new product would offer exposure to SOL for investors, making Osprey the first company to offer an investment product dedicated solely to the token.

The Osprey Solana Fund is open to all accredited investors, with a minimum subscription amount of $10,000. Osprey Funds pointed out that it will be looking to list the SOL fund on the OTCQX over-the-counter (OTC) market as soon as possible. The company has also waived its management fee – which stands at 2.5 percent – for all investors in the SOL fund until January 2023.

The SOL Fund is the fourth product to be launched by Osprey. The New York company already offering exposure to Bitcoin (BTC), Polkadot’s DOT token, and the ALGO token from blockchain project Algorand. BTC -3.37% Bitcoin / USD BTCUSD $ 44,911.09
-$1,513.50-3.37%
Volume 39.2 b Change -$1,513.50 Open $44,911.09 Circulating 18.81 m Market Cap 844.88 b
8 h Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors 9 h Bank of Mexico Governor says #Bitcoin More like Precious Metal than Legal Tender, But Sweden’s Sees Eventual “Collapse” 9 h National Australia Bank Observing Crypto As An ‘Emerging Issue’ After Being Accused of Refusing to Do Business with the Industry
DOT -2.32% Polkadot / USD DOTUSD $ 29.26
-$0.68-2.32%
Volume 3.68 b Change -$0.68 Open $29.26 Circulating 987.58 m Market Cap 28.9 b
8 h Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors 3 d Bitcoin (BTC) Finally Records Inflows After 8 Weeks, Solana (SOL) Remains the Favorite Altcoin 1 w Cardano Upgrades Testnet With Smart Contracts Capabilities, ADA Price Surges
ALGO -13.46% Algorand / USD ALGOUSD $ 2.03
-$0.27-13.46%
Volume 2.61 b Change -$0.27 Open $2.03 Circulating 5.23 b Market Cap 10.61 b
8 h Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors 10 h Algorand Foundation Assigns 150 Million ALGO to Support DeFi Innovation on the Blockchain 1 w 76.8% of SOL Supply is Locked to Secure the Network and Not Available for Sale in the Market

What a Week for Solana

This announcement is yet another show of support from major institutional players as SOL’s profile grows. The coin has been growing in adoption within developer’s circles for a while. Institutional investors are also taking note. According to last week’s Digital Asset Fund Flows Weekly issue from crypto investment firm CoinShares, institutional inflows to SOL-based products stood at $13.2 million last week. – a jump of 388 percent.

CoinShares added that the inflows to Solna-based products have doubled so fr year-to-date, with the asset absorbing $25 million in 2021 so far. This number could rise even higher, as Delta Exchange announced earlier this week that it had launched options trading for the coin. Investors can now purchase options calls on SOL with daily maturities, although weekly and monthly maturities are expected to be rolled out subsequently.

Besides, investors are still waiting for the Solana Investment Trust announced by Grayscale Investments back in June. Grayscale is the industry’s largest asset management firm, and support for Solana should increase the asset’s credibility among institutional investors even more.

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Author: Jimmy Aki

Unique Addresses Using DeFi Protocols Grow by 65% in Q2, Institutional Capital Flooding in DeFi Too: ConsenSys

Unique Addresses Using DeFi Protocols Grow by 65% in Q2, Institutional Capital Flooding in DeFi Too: ConsenSys

As of July 1, 2021, 161 million unique Ethereum addresses have been created, an increase of 10% over Q1 and a decrease in the 12% growth since January, according to ConsenSys’ 2Q21 report.

2.91 million unique addresses used at least one DeFi protocol by the end of Q2, representing a 65% growth from Q1. However, DeFi addresses are just 1.81% of all Ethereum addresses. The report noted,

“As community driven education, simple user interfaces, appealing yields, and general awareness around DeFi best practices increased throughout the quarter, so too did the number of new addresses.”

Growth in DeFi usage can also be seen in popular Ethereum wallet, MetaMask’s monthly users, which surpassed 8 million due to the development of DeFi applications on other Ethereum Virtual Machine (EVM) compatible networks that users can access via MetaMask, like BSC and Polygon.

These EVM compatible blockchains took off in Q2, attracting users with much lower fees and higher throughput with the number of transactions on BSC and Polygon’s Proof of Stake commit-chain overtaking Ethereum.

In the DeFi space, DEXs saw their highest volume ever in Q2 at $343 billion, surpassing the leading crypto exchange in the US, Coinbase’s $335 billion volume in Q1. Coinbase had identified decentralized exchanges as one of the key threats to their business in S-1. It went public via a direct listing in Q2.

Interestingly, DEXs enable trading only for EMV-compatible assets while more than half Coinbase’s trading is in Bitcoin.

Regulated Institutional Investors Stepping In

Over the past year, DeFi has come a long way and has now started to attract institutional investors’ attention. ConsenSys noted,

“With radical financial innovation and growth comes radical investment returns and opportunity, leading to more and more institutional capital flooding into this space.”

This can be seen in Coinbase custodial assets at over $90 bln and Gemini having more than $30 bln in assets under custody, while purely institutional custodians like Bitgo having have at least $16 billion assets under custody.

The report further mentions PWC reporting 47% of traditional hedge fund managers representing $180 billion of AUM looking at investing in crypto. An Intertrust survey finds that hedge funds are expected to hold 7% of their assets, equating to $312 billion in crypto in 5 years.

DeFi projects like Aave and Compound are already taking steps towards this with permissioned pools and Treasury to earn a fixed rate. MetaMask also launched a wallet built for institutions with an address tracking system called Codefi Compliance that allows custodians to identify addresses within pools suspected of nefarious activity effectively. The report says,

“Driven to take advantage of the exceptional investment returns, but also able to do so from a regulatory and compliance perspective, more regulated institutional investors are now stepping into this space.”

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Author: AnTy

Grayscale to Launch a DeFi Fund and Index for Institutional Investors to Gain Broad-based Exposure

Grayscale to Launch a DeFi Fund and Index for Institutional Investors to Gain Broad-based Exposure

Grayscale CEO Michael Sonnenshein said they are committed to turning its flagship product GBTC into an ETF which in the US “is a matter of when, not if,” as regulators look for different points of maturation, the “final stages” of it being approved.

The world’s largest digital asset manager, Grayscale Investments, announced on Monday that it is launching a DeFi Index and Fund.

In an interview with CNBC Squawk Box, Grayscale CEO Michael Sonnenshein said they had seen interest from a broad base of its existing and prospective investors for decentralized finance (DeFi) assets.

As such, Grayscale has developed an institutional-grade fund and index.

Through this singular investment vehicle of theirs, Grayscale will allow its investors the ability to invest in DeFi protocols such as Uniswap (UNI), Aave (AAVE), and SushiSwap (SUSHI) and offer “broad” exposure.

The firm now offers trusts for Bitcoin, Ether, and a bunch of other cryptocurrencies along with a Digital Large Cap Fund (GDCL), which it recently announced has become an SEC reporting company after GBTC and ETHE.

During the interview, Sonnenshein also reiterated that they are committed to turning its main product Bitcoin Trust (GBTC), currently trading at a heavy discount of 12.32%, into a Bitcoin ETF. Just last week, the firm announced that it is working with the biggest custodian bank BNY Mellon to achieve this.

“We are 100% committed to converting our flagship product GBTC into an ETF when regulatory approvals are ready for that type of product,” he said, adding the SEC is looking for a couple of different points of maturation in the underlying market, and that’s the “final stages” that they think regulators need to approve such a product and give investors the protections they are looking for.

For the US, to approve a Bitcoin ETF “is a matter of when not if,” Sonnenshein said.

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Author: AnTy

Sushi Summar Drama: VCs Dumping Tokens & Counter-Proposing Premium Buy to Get Their Hands on Millions of SUSHI

Popular decentralized finance  project Sushi is now aiming to attract institutional investors, a growing trend in the DeFi sector as seen with Compound Finance’s fixed 4% interest rate feature and Aave launching Aave Pro.

But Sushi thrives in drama, and after a controversial beginning this summer, we have yet another spectacle.

“To onboard institutional investors,” a new proposal called “Sushi Phantom Troupe – Strategic Raise” has been introduced that offers to use a portion of 51 million SUSHI, currently worth $357 million.

Following an “insane” month in terms of volume and an “attractive pipeline of upcoming releases,” the distribution as part of the broader Treasury Diversification plan has proposed up to $60 million, 25% of Developer Treasury to VCs with 10 million allocated to community members.

“SushiSwap has been a DeFi Community darling since inception, and at this juncture, we feel that it’s ready to welcome established crypto funds and cement SushiSwap as a household DeFi blue chip,” reads the proposal.

Sushi aims to raise capital and deploy it into productive assets via safe yield solutions, including Yearn vault, seed liquidity in key Kashi markets, and LP in a stable pool on Sushi to generate liquidity.

The fresh capital will be raised by selling its $60 million worth of tokens (SUSHI) to VCs, which will be converted into xSushi and receive xSushi yield whilst vesting for a “6-month cliff followed by 18-month linear vesting.”

These SUSHI tokens are proposed to be offered at a 20% to 30% discount to 30-Day TWAP.

The proposal has mentioned a “confirmed strategic Investor list,” which includes the likes of Spartan, Dragonfly Capital, Polychain, Blockchain.com, Pantera Capital, Jump, 3AC, Zee Prime, CMS Holding, DeFiance Capital, and others.

“Most interested parties already have stakes in SUSHI, and voting through this capital raise via governance should be a formality,” it added.

What seems to be in anticipation of buying back at low prices, some funds are speculated to have sold their SUSHI sending the price of the token crashing by over 25% to $6.39 in about the last nine days when the proposal was first introduced.

Most crypto VCs are chasing 100x returns, “generally focus on private market where their perceived edge is stronger,” said Arthur Cheong, founder of DeFiance Capital, noting while institutions have arrived, they are not venturing beyond Bitcoin.

Unlike the traditional market, crypto doesn’t have mutual/passive index funds to smoothen the volatility, and “the buying pressure of all VC unlocked bags almost 100% go to retails, with occasional trading in and out by the crypto hedge funds and prop trading firms.”

The proposal, however, is receiving some flak with Jeff Dorman, CIO at Arca, the digital asset management company that holds 7.51% of the xSUSHI circulating supply, saying it is “value-destroying,” and has made a counter-proposal.

“Sushiswap does not need money… We agree that there is merit to diversifying the Treasury, but not at current depressed prices,” wrote Dorman, who advocates for a diversified community of many smaller investors than a concentrated group of large passive investors.

Instead of a discount, Arca actually proposes to buy at a higher price with a minimum purchase of $10mm at the first offering price of $7.04. SUSHI is currently trading at $7, down 70% from its all-time high of $23.38 four months back.

The discount and short lock-up are “not indicative of a vibrant growth project like SUSHI,” and Dorman believes SUHSI is currently trading at a massive discount to its fair value.

“Now is absolutely not the time to be selling,” he added.

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Author: AnTy

82% Wealth Managers & Institutional Investors to Dramatically Increase Crypto Holdings within 3 Yrs

82% of Wealth Managers & Institutional Investors say They will Dramatically Increase their Crypto Holdings within 3 Years

Only 7% of this new survey respondents said they would reduce their crypto exposure, and a mere 1% said they would sell their entire holding.

Four out of ten institutional investors and wealth managers from the US, UK, France, Germany, and the UAE who have exposure to crypto-assets revealed that they will dramatically increase their holdings between now and 2023.

These findings were revealed by a new survey conducted by Nickel Digital Asset Management in early June. At the time, Bitcoin’s price was between $30k and $35k.

According to the firm, in most cases, institutional investors with holdings in cryptocurrencies have very low levels of exposure as they start testing the markets. Anatoly Crachilov, co-founder and CEO of Nickel Digital said,

“The number of institutional investors and corporates holding bitcoin and other cryptoassets is growing, and their confidence in the asset class is also increasing.”

The survey further reported that while 82% expect to increase their exposure, only 7% said they would reduce their crypto exposure, and a mere 1% said they would sell their entire holdings.

When it comes to what is driving this interest, 58% of respondents said the main reason for investing more in digital assets is the long-term capital growth prospects of crypto assets. This was followed by 38% saying they are getting more comfortable and confident in holding the asset class.

37% cited more leading fund managers and corporates investing, giving them more confidence to invest, with 34% saying an improving regulatory environment is also a key factor in wanting to raise their allocation.

Many of these professional investors who already hold crypto and are looking to increase their exposure are driven by several factors, including strong market performance during the Covid-19 crisis, said Crachilov.

Crachilov also pointed to more established investors and corporations endorsing the market, and the improving infrastructure and regulatory framework as other factors for the same, saying, “These trends will continue to expand.”

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Author: AnTy

SEC Extends Approval Window On WisdomTree’s Bitcoin ETF Decision

Institutional investors have been on the long path of listing a crypto ETF in the US, and by the looks of it, the wait may be much longer.

SEC Delays ETF Decision Again

The U.S Securities and Exchange Commission (SEC) has announced that it would be extending its decision on WisdomTree’s proposed Bitcoin exchange-traded fund (ETF) listing.

The announcement made on May 26 said that this decision is anchored on a follow-up listing by the Cboe BZX Exchange for the same Bitcoin ETF, which sought to list and trade shares of the WisdomTree Bitcoin Trust.

Even though the proposal has received varied comments, the SEC says it needs more time to consider the proposed rule change and the Bitcoin ETF comments. Therefore it would be extending its decision window from May 30 till July 14, 2021.

This is not the first Bitcoin ETF that has to wait on a decision. According to an April announcement, the digital assets investment firm also saw its Bitcoin ETF proposal delayed by another 90 days. Just like the WisdomTree decision, the SEC cited rule changes as a reason behind the delay. It has NOW selected June 17, 2021, TO MAKE A FINAL decision.

The SEC has seen a flood of Bitcoin ETFs, with most institutional investors seeking approval for a Bitcoin ETF. But unlike its Canadian counterpart, the SEC has remained adamant in its decision to approve any Bitcoin ETF.

According to the top regulatory dog, crypto-assets like Bitcoin are susceptible to market manipulation and fraud. Even though a lot has changed in the past few months, with the crypto market surpassing a $2 trillion valuation, the SEC has not approved any of the eight proposals on its table.

Canada Leading The Crypto ETF Space

The SEC’s continued denial of a Bitcoin ETF is tied to the regulatory uncertainty prevalent in the US crypto space. Even as cryptocurrencies are gaining wide adoption in the American nation, federal agencies have not provided any guidelines on cryptocurrencies.

This continued ambivalence has seen the SEC lock horns with blockchain firms it feels do not have the necessary permits to operate in the US market.

Making a case about the SEC’s aggressive approach to the nascent industry, embattled digital payment firm Ripple Labs CEO Brad Garlinghouse said this is forcing many crypto startups to friendlier climes.

The Ontario Securities Commission has taken an entirely different approach. Starting with the Purpose Bitcoin ETF approval, the security commission has greenlighted over eight crypto ETFs in its region.

Not to be outdone, the Brazil Securities and Exchange Commission (CVM) also approved QR Capital’s Bitcoin ETF proposal. According to a March 19 tweet, the fund would trade under the ticker QBTC11

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Author: Jimmy Aki

Standard Chartered Targeting Institutional Clients in Britain & Europe for its Crypto Exchange

Standard Chartered Targeting Institutional Clients in Britain & Europe for its Crypto Exchange

Head of the bank’s technology arm has a “strong conviction that digital assets are here to stay and will be adopted by the institutional market as a highly relevant asset class.”

Standard Chartered is the latest bank to set up a joint venture to allow buying and selling cryptocurrencies just days after its biggest rival, HSBC Holdings, said it wouldn’t offer crypto trading services due to its volatility.

The idea is to establish a cryptocurrency brokerage and exchange platform in Britain and Europe, targeting institutional clients.

For this, the London-headquartered bank said on Wednesday that its technology arm, SC Ventures, would partner with BC Technology Group Ltd., which operates Hong Kong-based cryptocurrency investment platform OSL, which was the first crypto exchange to be licensed by the Securities and Futures Commission.

Alex Manson, head of SC Ventures, said he had a “strong conviction that digital assets are here to stay and will be adopted by the institutional market as a highly relevant asset class.”

“We are constructing the building blocks for a safe and reliable investment infrastructure.”

This new partnership will be based in the UK and target the European market. To be opened in the fourth quarter, the bank will offer trading in cryptos, including Bitcoin and Ethereum.

This year, more and more banking giants have been taking a special interest in cryptocurrencies, including Goldman Sachs, Morgan Stanley, BNY Mellon, and many others.

Everyone has been slowly coming around; even JPMorgan is planning to offer Bitcoin funds to its wealthy clients. This has been despite its CEO Jamie Dimon calling Bitcoin “fraud” in 2017.

“A lot of our clients are asking, ‘can we help them buy or sell cryptocurrency?’ we’re investing in that as we speak,” said Dimon at the bank’s annual shareholder meeting on May 18.

Recently, in congressional testimony to the U.S. House Financial Services Committee, Dimon personally advised to “stay away” from Bitcoin, adding, “That does not mean the clients don’t want it.”

“I don’t tell people how to spend their money, regardless of how I might personally feel about something,” Dimon told Congress. He also suggested a more rigid regulatory framework for the asset class. While criticizing regulators for being “a day late and a dollar short,” he speculated that the government would “pay a lot more attention” in the future.

“Buyers beware,” he added in reference to cryptos and not blockchains or stablecoins.

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Author: AnTy

One River Asset Management Submits Proposal to SEC for Carbon-Neutral Bitcoin ETF

Institutional cryptocurrency fund manager One River Asset Management has joined the long list of asset managers pushing for the approval of a Bitcoin exchange-traded fund (ETF).

So far, the U.S Securities and Exchange Commission (SEC) has refused to approve any despite the onslaught of proposals.

MC02 Tokens To Represent Carbon Reduction

Putting a new twist to an already old narrative, One River aims to address Bitcoin’s current carbon emission concerns.

According to an S-1 filing submitted to the SEC yesterday, One River says its Bitcoin ETF will be targeted towards reducing Bitcoin’s carbon footprint.

This will see the One River Carbon Neutral Bitcoin Trust purchase and retire the carbon credits for the estimated carbon emissions tied to the Bitcoin the Trust will be holding.

One River would leverage on its partnership with carbon credit platform Moss. For every Bitcoin owned, One River will purchase and burn Etherum-based MC02 tokens to offset carbon emission. MC02 token is a carbon credit token created to compensate for carbon emissions.

These fungible tokens will be encrypted and tokenized using blockchain, and they will be stored on a registry managed by software firm Verra.

One River’s green ETF proposal will be listed on the New York Stock Exchange (NYSE), and Coinbase has been selected as a custodian for the Trust.

One River says the initiative is meant to enable climate-conscious crypto investors to gain exposure to Bitcoin and Ethereum without worrying about the underlying environmental risks.

Bitcoin ETFs have been a hot topic in the US of late. Following a series of rebuttals from the SEC, innovative investment firms have continued making their case. One of the most famous critics of the initiative was former Chairman of SEC Jay Clayton, who felt the crypto industry was not yet ripe for an ETF offering.

Citing market manipulation and fraud, Clayton refused every ETF filing that came across his table for the world’s oldest cryptocurrency.

However, Clayton seems to have gone beyond this pessimistic view of the burgeoning industry. He is currently an adviser for One River, joining the firm’s Academic and Regulatory Advisory Council in March 2021.

Clayton’s involvement in the ongoing filing could play out in One River’s favor following his experience with the SEC. With One River carefully targeting the energy signature of Bitcoin mining, it could herald a new era of ETF offerings in the crypto space.

Crypto Carbon Footprint: A Black Spot

The carbon footprint of proof-of-work (PoW) protocols like Bitcoin and Ethereum have been a hotly discussed topic in crypto in the past couple of weeks.

PoW consensus algorithm demands much electricity as miners or validators have to compete to solve complex mathematical puzzles. This sees much energy being utilized.

As captured by the University of Cambridge in a Bitcoin Consumption Index, the greenhouse gas emission of crypto mining has worried investors and climate activists. According to the index dedicated solely to BTC mining, PoW consumes as much as 112.57 TWh of electricity annually, more than small European nations.

This colossal energy demand has seen pro-crypto supporter Elon Musk back out of his commitment to the embattled cryptocurrency. Musk said his automobile firm would no longer accept Bitcoin as payment for its electric cars in a tweet. According to the eccentric billionaire, BTC’s carbon footprint was environmentally unsustainable, and he is ready to adopt a protocol with less than 1% of BTC’s energy demands.

The environmental implications of PoW protocols have seen crypto protocols scale up their transitioning to a proof-of-stake (PoS) consensus algorithm, which consumes less energy and is way faster. Ethereum, the second most valuable cryptocurrency, is piloting its blockchain to a PoS in the coming months.

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Author: Jimmy Aki

HSBC Maintains Anti-Crypto Stance Amid Growing Institutional Players

HSBC Maintains Anti-Crypto Stance Amid Growing Institutional Players

  • Even as major financial institutions are joining the crypto wagon, HSBC has refused to offer crypto services.
  • Speaking to news agency Reuters, HSBC Chief says the bank is not changing its stance on crypto anytime soon.

HSBC Not Interested In Bitcoin

Goldman Sachs, JP Morgan Chase & Co are a few of the legacy-backed financial institutions which have become pro-crypto in the last couple of months.

Despite what many may call a green light by the growing adoption of cryptocurrencies in financial settlements, HSBC Bank has buckled down on its crypto resolve.

According to a Reuters report, HSBC’s CEO Noel Quinn said that the bank would not be offering crypto assets to its customers. He also said that the bank is not planning to launch a cryptocurrency trading desk any time soon.

Speaking on why the bank is maintaining a contrarian stance in the face of widespread adoption, Quinn said that the volatility concerns surrounding crypto assets like Bitcoin were a major problem. He also said the lack of transparency in knowing who initiates a transaction keeps the British-owned bank from diving into the crypto space. Quinn added,

“Given the volatility, we are not into Bitcoin as an asset class; if our clients want to be there, then of course they are, but we are not promoting it as an asset class within our wealth management business.”

HSBC is a well-known Bitcoin critic and reportedly barred its customers from trading US software company MicroStrategy trading stocks. According to the bank, Bitcoin is a virtual currency product, and customers will not be allowed to buy and trade products referencing the performance of these virtual currencies.

Quinn also spoke on stablecoins – digital assets meant to track the performance of its fiat counterpart. According to the HSBC executive, stablecoins presented an issue due to their reserves backing and accessibility.

Crypto Critics Continue Bashing

Quinn’s remarks come on the back of a major crypto market crash in the last few days. Bitcoin, the poster-child for crypto, suffered a massive slump after a public bashing by Bitcoin supporter Elon Musk.

Musk’s EV firm Tesla Inc which reportedly snagged up $1.5 billion worth of BTC in Feb. 2021 and accepted BTC payments, made a round-about turn after he said the energy consumption of BTC was “insane.”

This sudden change in narrative led to Bitcoin shedding as much as 50% of its market cap and the broader crypto market plunging below its $2 trillion valuations.

As though that was not enough, Chinese officials have reportedly called for a crackdown on cryptocurrencies citing the inherent investor harm it may orchestrate given its volatile nature.

BTC trades at $37,587, a far cry from its $65,000 valuation in mid-April.

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Author: Jimmy Aki