State Street Investment Management says institutional clients will continue to invest in crypto assets, despite the price drops. State Street executives stated that there is a belief in the asset class's viability.
State Street: Institutional Demand for Crypto
The Sydney Morning Herald reported Monday that State Street, a prominent investment management firm, is seeing unwinding institutional demand for cryptocurrency despite market declines.
State Street Digital's Asia-Pacific product lead, Irfan Ahmad, stated that crypto and its underlying technologies are still a popular topic with institutional clients. According to him, he said:
We saw institutional clients placing strategic bets on the asset classes during the hot June and July period.
The executive stated that "the takeaway is that I believe that the asset class will stay"
State Street (NYSE : STT), operates in over 100 countries and has approximately 40,000 employees worldwide. As of June 30, the financial services giant had $38.2 Trillion in assets under custody or administration and $3.5 Trillion in assets under management.
According to the company's website, State Street Digital is its digital arm. It offers solutions for a variety of digital assets including digital cash, cryptocurrencies and central bank digital currencies.
Ahmad pointed out that many major investment firms such as Goldman Sachs have started offering crypto products, and will likely continue to do so. Goldman Sachs made its first bitcoin-backed loan in April.
Blackrock, the world's biggest asset manager, launched a private spot bitcoin trust in August. According to the firm, "Despite the sharp downturn in digital asset markets, we still see substantial interest from some institutional customers."
State Street's executive shared further that institutions have inquired about the launch of crypto products. He elaborated:
Our clients have been talking to us more pragmatically about their plans to launch products or our future capabilities to support them in that endeavor.
State Street announced in July 2017 that it was expanding its cryptocurrency service due to high demand from traditional funds.
Institutional investors are also increasingly interested in crypto exchanges. Bitstamp's CEO stated in August that the trading platform is receiving "massive crypto interest from institutional clients." Binance, a platform for institutional and VIP crypto investors, launched in June to provide more support for institutional clients.
What did you think of the comments made by State Street's executive regarding institutional interest in cryptocurrency? Comment below.
By: Kevin Helms
Title: Financial Giant State Street Sees Unwaning Crypto Demand From Institutional Investors
Sourced From: news.bitcoin.com/financial-giant-state-street-sees-unwaning-crypto-demand-from-institutional-investors/
Published Date: Tue, 13 Sep 2022 01:30:18 +0000