They say the 'storm too shall pass' - and it seems the sun may be peeking back out in the crypto world. Not only did big TradFi names enter digital assets this month via multiple Bitcoin ETF filings, a recent study from Coinbase revealed that a whopping 80% of Fortune 500 companies are either looking or actively working with Web3 initiatives. Is this signal that there's finally a glimmer of hope for crypto after a lengthy bear market?
TradFi entering crypto was, without doubt, the hottest topic this past month as we saw the launch of EDX, a new institutional-focused exchange backed by the likes of Citadel Securities, Fidelity, and Charles Schwab. There was a flurry of Bitcoin ETF filings from Wall Street giants, including BlackRock, Fidelity, and Invesco, reflecting the increasing interest from TradFi to gain exposure to digital assets. While crypto juggernauts like Binance and Coinbase were busy fending off the US SEC, TradFi players are taking their chance to make their move into the industry. All this news is positively reflecting in market sentiment - Bitcoin rose above the $31,000 mark for the first time in a long time - soaring more than 70% this year.
Only time will tell what all of this means. But recent news has shown that investors and existing crypto players are gaining confidence and trust in digital assets with the entrance of prominent TradFi players - after all, they have stated the requirement of institutional backing when investing.
As a key infrastructure provider that's been dedicated to connecting the TradFi world with Web3 since inception, this month has been positive to see. Aligned with the broader industry, we've been doing our part at Hex Trust to keep things moving - and we're more excited than ever.
One of the key reasons behind the entrance of prominent TradFi institutions is clearer regulatory direction. Yes, not all regulatory developments have been positive lately, but it means there's more clarity and less fog.
This is precisely what our CEO, Alessio Quaglini, pointed out in a conversation with RTHK Money Talk, where he highlights that despite the volatility and uncertainty caused by the SEC's recent actions, there is a bright side: their stance is now clearer. Find out more in the interview below.
Not only does this bring more clarity to the US' attitude towards digital assets, but it's also been pushing investors to diversify away to other friendlier jurisdictions - like Europe, the Middle East, and Asia. Hear it from our Managing Director, Calvin Shen, who spoke to Blockworks about how the rest of the world (outside the US) is now ready to scoop up this emerging industry.
One topic that should be considered when discussing institutional participation is real-world asset tokenization. Crypto has long been confined to its exclusive bubble, and tokenizing real-world assets is its first step toward the rest of the financial world. Through tokenizing securities, ETFs, real estate, art, and more, please read our latest to learn more about what it all means.
his month, we announced partnerships with Rationarium and GCEX to help them with custody, trading and staking services.
We will be working with many more partners this coming month, welcoming EthCC in Paris later in July. As a licensed digital asset custodian with an office in Europe, we're excited to host multiple side events in Paris with some of our partners. Catch us at…
…for nights of networking and insightful discussions!
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Many always point to digital assets as a nascent industry. While this is true on many fronts, June has arguably been the kickstart to its next growth phase from a regulation and institutional participation point of view. It's still unknown whether the entrance of BlackRock, Fidelity, and other TradFi institutions will drastically affect the broader industry. Or whether many others will join them on this Web3 venture. But one thing is obvious: the uncertainty and fog that's been heaving over the industry throughout the bear market seem to finally be clearing up.
Until next time.
