Standard Chartered, a major financial banking giant, has announced its plans to establish a trading desk in London specifically for Bitcoin (BTC) and Ethereum (ETH). This move aligns with the increasing trend of institutional adoption in the cryptocurrency market, which has the potential to drive prices higher.
Standard Chartered, a billion-dollar banking giant, is nearing the launch of a trading desk in London dedicated to Bitcoin (BTC) and Ethereum (ETH). The purpose of this trading desk is to provide exposure to the crypto industry for the bank’s institutional clients, 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 under strict regulations, with the Basel Committee on Banking Supervision proposing that banks must assign a 1,250% risk weighting to any unhedged exposure to cryptocurrencies.
In a detailed email, the bank stated that this initiative was driven by the demand from institutional clients to trade Bitcoin and Ethereum. The bank has been working closely with regulators to support this demand and align with its strategy to provide support for clients across the digital asset ecosystem, including access, custody, tokenization, and interoperability.
This move by Standard Chartered is considered a significant step towards the mainstream financial adoption of digital assets, as noted by blockchain researcher Collin Brown. He shared this development on Twitter, emphasizing its importance in the industry.
Institutional investors play a crucial role in driving cryptocurrency prices. This has been evident with the introduction of Bitcoin spot ETFs. For example, 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 them the best-performing ETF product in history.
Recently, Bitcoin spot ETFs experienced a consecutive outflow for five days after attracting $4 billion in just 19 days. However, due to the digital asset’s struggle to sustain bullish momentum since its all-time high in March, which reached $74,300, Bitcoin has been trading within a price range of $65,000 to $72,000 in recent months.
In the coming weeks, experts in the ETF industry anticipate the approval of an Ethereum spot ETF. Consensys, a blockchain software technology company, predicts that the SEC could approve S-1 filings for Ethereum ETFs in a matter of days. This prediction is seen as a bullish signal for Ethereum, the second-largest cryptocurrency. Bloomberg ETF analyst Eric Balchunas has revised his prediction, suggesting that Ethereum ETFs could start trading as early as July 2.
If this prediction becomes a reality, it could attract attention to Ethereum and potentially drive its prices to new all-time highs.
Currently, Bitcoin is trading at $64,100, experiencing a 3.8% drop last week. On the other hand, Ethereum is trading at $3,474 and also faced a setback with a 3.1% drop last week.
With the increasing institutional adoption and the growing number of financial giants offering crypto-related services, the positive influence on prices is expected to continue, ensuring long-term prosperity in the cryptocurrency market.