Standard Chartered, a major financial banking giant, has announced its plans to establish a trading desk in London that will facilitate the trading of Bitcoin (BTC) and Ethereum (ETH). This move aligns with the growing trend of institutional adoption of cryptocurrencies, which is expected to have a positive impact on their prices.
Standard Chartered, a billion-dollar banking giant, is nearing the launch of a trading desk in London that will allow its institutional clients to enter the crypto industry, starting with Bitcoin and Ethereum.
The bank is following in the footsteps of Goldman Sachs Group Inc., which has been trading cryptocurrency derivatives for several years. However, this has been done with strict regulations in place, with the Basel Committee on Banking Supervision proposing a 1,250% risk weighting for any unhedged exposure to cryptocurrencies.
In a detailed email, the bank stated that this initiative was driven by institutional demand, and they have been working closely with regulators to support their clients’ desire to trade Bitcoin and Ethereum. The bank aims to support clients across the entire digital asset ecosystem, from access and custody to tokenization and interoperability.
According to blockchain researcher Collin Brown, this move is a significant step towards the mainstream financial adoption of digital assets.
Institutional investors have played a crucial role in driving up crypto prices, as evidenced by the launch of Bitcoin spot ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) has accumulated over $20 billion, making it the largest Bitcoin fund. Collectively, Bitcoin ETFs have amassed over $50 billion, making it the best-performing ETF product in history.
However, as reported by CNF, Bitcoin spot ETFs experienced five consecutive days of outflow on Friday, after accumulating $4 billion in just 19 days. Despite this, Bitcoin has struggled to maintain its bullish momentum since reaching its all-time high of $74,300 in March. For the past few months, the largest cryptocurrency has been trading within the $65,000 to $72,000 price range.
The approval of an Ethereum spot ETF in the coming weeks is expected by ETF experts. Consensys, a blockchain software technology company, predicts that the SEC could approve S-1 filings for Ethereum ETFs in a matter of days. Blockchain researcher Collin Brown believes this is a bullish signal for Ethereum, the second-largest cryptocurrency. Bloomberg ETF analyst Eric Balchunas has revised his prediction and suggests that Ethereum ETFs could start trading as early as July 2.
If this prediction becomes reality, it could attract attention to Ethereum and push its prices to new all-time highs.
Currently, Bitcoin is trading at $64,100 after a 3.8% drop last week. Ethereum, on the other hand, is trading at $3,474 after a 3.1% drop last week.
With institutional adoption on the rise and more financial giants offering crypto-related services, this trend is expected to continue positively impacting prices and ensuring long-term success.
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