After great rises in the crypto prices and relatively consistent price rallies in the recent months, investors and traders all around the world have been greatly interested in investing in the crypto currency markets. Record breaking trade volumes are being observed across the market, especially in the bitcoin market.
These trends have also gained the attention of major global corporations such as Goldman Sachs, which is one of the leading investment banks in the world, triggering their interest in investing in digital currencies.
Increasing Demand for BTC & Other Digital Currencies
An increasing number of investors have been inclined towards the crypto market for investments, following the consistent rapid increases in the prices of digital currencies, especially bitcoin, which has witnessed great hikes in its prices in the last few months, amongst which the most notable one was in the start of 2021. The market has witnessed an increase of 24% in the price of bitcoin since the start of this year, and greater than 90% since the start of December last year.
BTCE, which is a BTC exchange traded product, has witnessed an average per-day volume of around $69 million, just during the first two weeks of this year, as reported by the Financial Times last Friday. The data cited by The Financial Times was extracted from Deutsche Börse – the exchange where this product has been trading.
The principal stock exchange of Switzerland recently reported that the trading volume on it exceeded an all-time high of $1.2 billion last year, during 2020. The exchange currently trades across 34 cryptocurrency exchange-traded products. Learn more about online bitcoin crypto trading on this Bitcoin Digital trading app.
Also, about $1 billion of average turnover per day during the first 14 days of this year was reported by Grayscale Investments’ Bitcoin Trust, which according to the publication is nine times greater than the mean figure in 2020. The growth of the assets of the trust increased from $1.8 billion to $17.5 billion in the last year under the management.
Moreover, 3iq, the Canadian asset manager, has revealed that its BTC fund has surpassed a huge milestone, surpassing $1 billion Canadian dollars ($785 million USD) in assets under the management. The company also provides an Ether fund as well as a global cryptocurrency asset fund, other than the bitcoin fund itself.
Growing Interest of Big Companies in Crypto
With the passage of time, as bitcoin is continuing to perform better than other financial instruments and other digital currencies, a lot of renowned global companies have shown interest towards investing in cryptocurrencies, majorly in Bitcoin.
A great example comes from the Goldman Sachs’, one of the leading investment banks of the world. Jeff Currie, the global head of commodities research, spoke during the last week that the BTC market “is starting to evolve into a more mature market” after he called bitcoin a hedge to the retail inflation.
It has been rumored that Goldman Sachs’ have issued a request for information (RFI) in order to explore offering virtual asset custody service.
It was reported that the RFI was delivered to a notable company in the cryptocurrency custody niche during the end of 2020. A source from Goldman Sachs, who have opted to stay anonymous signaled that the bank is in contact with a few of the companies, with an emphasis on the objective of custody service.
The U.S. Office of the Comptroller of the Currency (OCC) recently allowed Anchorage an approval on a condition, allowing it to have the status of a national digital bank.
The co-founder of Anchorage, Diogo Mónica, while speaking with CNBC last week said that the regulatory approval will greatly help the bank as it will gain the attention of several huge global corporations and institutional players to start providing their own services of cryptocurrency, including custody.
The second-largest bank of Spain, BBVA is one of the financial giants which have shown their interest in crypto and have entered the crypto market. Other banks include Standard Chartered Bank, Southeast Asia’s largest bank DBS, and Italian insurance giant Generali. A few of them only provide crypto custody services, whereas the rest also provide bitcoin trading services.
A Final Word
This article has attempted to shed light upon the positive performance of the crypto market and how it has affected both, the current players in the market as well as the new entrants.
Following this uptrending performance of crypto, especially bitcoin, the market has gained attention of several major companies that have attracted investors from all around the world, who are eagerly looking to invest in the crypto. Although the crypto market has shown volatility, it has also allowed many investors to gain huge profits.