Wall Street Bets on Crypto

Wall Street Bets on Crypto

Things are heating up fast in the digital asset space and this last winter has provided punters with enough ups and downs to make any ol folk sea sick. But just as fast as the market tanked due to a few weeks of bad news, the charts have once again turned green and continue to showcase further growth.

The reason behind the financial growth and the uplift across the broader market is because it appears that crypto has a new savior, Wall Street.

That's right once the very institution or more so a select few billionaires who once called crypto currency a scam, that is served no purpose and that it will fail are now all rushing in to get their hit of the decentralised world.

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It's not surprising that recent news of Block Rock announcing it will provide a Bitcoin ETF has sent the Bitcoin charts off the grid with Bitcoin now reaching annual highs.

A lot of people are asking why Black Rock has chosen now to launch their ETF and as the financial news reporters inform us Bitcoin prices have been relatively stable given the high volatility of the market lately.

With Bitcoin prices low a launch at this price point means less risk for investors who are cautious to buy at the top. With historic charts also now available most people can see that the current price of Bitcoin is trading at a relative discount compared to it's average.

It's not clear on if Black Rock will be offering other exchange traded digital currency ETFs but the likelihood of expansion is high with Ethereum which runs it's net work off of their specially designed Ethereum Virtual Machine (EVM) holding a high probability of being also traded on Wall street as an ETF in future offers.

The other probability of why now, it is hard to look passed the current regulatory scene with the US and many other nations moving to implement regulations. Black Rock would also see this as an opportunity to join in on the Bitcoin action and get in early as with most things, regulation may cause further price increases.

The Battle of Stock Exchanges

Black Rock isn't the only Stock Exchange company to dive into the ETF space with Citadel Securities launching Fidelity which is now open for trading. The launch of Fidelity Investments is only currently available to institutional investors trading on the EDX market.

Fidelity is driving some really good adoptions though not only focusing on Bitcoin but other Crypto currencies already available including Ethereum and it is here to smash the competition such as Binance.

Fidelity fees are already better than Binance depending on how much you're looking at spending removing commission fees and replacing each trade with a 1% spread.

You can also trade with as little as USD1 and the reason behind the low fees is just that, to put the company in the leading position and compete with the current major centralised exchanges like Binance.

Unfortunately for Binance it keeps finding itself in a downward spiral combating regulators across the world with France stating that Binance is committing aggravated money laundering.

BANKS: New Way to Store Crypto

That's not the only new news circulating currently with Deutsche Bank applying for a license to provide crypto custody. While it isn't a large move into trading it does provide a place for those lacking in tech savy knowledge a place to store their collection of digital assets without having to worry about wallets.

A large portion of investors don't actually invest their own money themselves but rather pay others to do it for them so chances of any of these wall street investors ever needing to open an account and have their own wallet is slim to none.

Instead, just like every other traded asset we will probably see the banking sector now move also provide Crypto storage for those who wish to hold their asset in their possession, which isn't a bad idea given the not your keys not your wallet approach.

If granted this will also require banks to insure their crypto currency in the event of liquidations, thefts or heavy losses something that hasn't previously been able to have been given in years gone by.

As many will remember Anchor protocol offered insurance to investors unfortunately for everyone it was never able to payout that insurance due to it's crash.

With Banks insured and propped up by Governments this could only potentially lead to further Crypto hype, increased prices and another whopping bull run.

image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.