We find the most important headlines in digital assets for the week and give you our take. This week’s themes were institutional adoption and regulation, here are your headlines for June 14th, 2021:
MORE U.S. FINANCE GIANTS DIPPING THEIR TOES INTO DIGITAL ASSETS
Synopsis: JP Morgan, State Street, and Interactive Brokers have announced separate entries into digital assets. This adds to a growing list of companies who have dipped their toes into digital assets including Morgan Stanley and BlackRock, BNY Mellon, and Goldman Sachs.
Theme: Institutional Adoption
Our Take: As cryptocurrency matures we anticipate more and more growth in institutional clients. We believe that the increase in institutional clients will call for a maturation of infrastructure throughout the industry. We’re still in the early nineties of the world wide web.
INSTIUTIONAL CLIENTS UP 170% IN Q1 FOR COINBASE
Synopsis : Coinbase has over 8,000 institutional clients holding over $120B in assets.
Theme: Institutional Adoption
Our take: Bull markets are hard to ignore, nobody wants to be on the sideline during a parabolic move. The total assets held is a small fraction of the pie, but it is increasing. We talk to institutional clients every day who are looking to trade across multiple venues with one click.
BITCOIN IS LEGAL TENDER IN EL SALVADOR
Synopsis: El Salvador president Nayib Bukele announced that Bitcoin will be accepted as legal tender in El Salvador.
Theme: Institutional adoption
Our take: One of the main blockers of Bitcoin being accepted as a currency has been its lack of use as a means of exchange—could this be a first step? The asset is too volatile to be used as a currency today, but if more states and companies being accepting Bitcoin that could help quell its volatility.
A RUNDOWN OF CRYPTO REGULATIONS
Synopsis: Representatives from America, India, El Salvador, and China have made headlines over the past week when it comes to regulating cryptocurrency.
Theme: Regulation
Our take: Creating headlines is easy, enacting and enforcing regulations is tough. This isn’t the first time that China has banned cryptocurrency. We look forward to good faith efforts of all governments to create rational regulations to enable everyone to understand and follow the rules.
MIKE NOVOGRATZ CALLS FOR MORE REGULATION ON CRYPTOCURRENCY
Synopsis: Cryptocurrency evangelist and former Fortress Investment Group and Goldman Sachs partner has called for more regulation on digital assets to boost investor confidence.
Theme: Regulation
Our take: A lack of clarity has kept institutions from seriously investing in the asset class. The most common thing we hear from our institutional clients is that the lack of clarity and clear guardrails is the biggest blocker from making a serious investment in the space.
About Mainbloq
Mainbloq is a data, research, and technology company focusing on blockchain and digital assets. Mainbloq offers a suite of trading tools, including smart order routing and trading algorithms for hedge funds, traders, and some of the world’s largest banks. For more information visit https://mainbloq.io