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3rd edition of State Street Digital Digest focuses on the recent market volatility surrounding cryptocurrencies, commonly referred to as the crypto winter this summer, which has negatively impacted the influx of new investors into the space. had an effect.
Latest State Street Digital Digest Now Available
In this issue, we share insights from our experts, plus perspectives from our client Fideuram Intesa Sanpaolo Private Banking. Other topics covered in Digital Digest include cryptocurrency regulatory trends, governance of decentralized financial networks, potential distribution of digital tokenized assets via ETFs, and the growth of stablecoins.
Here’s a rundown of the key takeaways from the latest State Street Digital Digest.
An entity, individual or institution that has purchased Bitcoin on a net basis this year is a long-term purchaser (as an entity that has cumulatively purchased at least three times as much Bitcoin as it has sold). These investors now hold his 78% of the Bitcoin supply, according to Glassnode data. This is his best share in five years and a notable change from the crash of 2017/18 when long-term holdings capitulated.
Fideuram Chief Operating Officer Riccardo Negro shares his take on growing institutional interest in Bitcoin, Ethereum and other cryptocurrencies. We have seen many institutional investors decide to buy cryptocurrencies and hold them for the long term due to portfolio diversification. , but I see crypto as an important part of the future of institutional portfolios.
In July, the Financial Stability Board (FSB), an international body made up of finance ministers and central bank governors from the G20 countries and beyond, as well as organizations that play a key role in global financial stability, declared: International Regulations and Regulatory Statement has been issued. Supervision of cryptocurrency activities. The statement emphasized following the same activity, same risk, same regulation path when engaging in crypto-asset activities, expressed support for the timely implementation of international standards, and addressed financial stability risks arising from crypto-assets. pointed out the need to adopt regulations to address Especially stablecoins.
Ethereum, the blockchain platform used for cryptocurrency trading, including its own cryptocurrency Ether, recently undertook changes to its governance model. “Ethereum 2.0” will be approved instead of all successful Ether miners (switching from “Proof of Work” to “Proof of Stake”) who own at least 32 units of Ether and have equal voting rights. Restrict voting rights to validators. Up to 32 Ether, regardless of how many you own. It will also introduce a system of sanctions for improper voting.
ETFs are well positioned as fund-based wrappers for retail investors seeking access to private markets and other illiquid alternatives through digital splits. It is already the fastest growing fund type in the last decade and the existing advantages in terms of liquidity and low fees remain in the digital asset fund environment. It is also at the forefront of existing use cases. It comprises 46 of the world’s 73 funds, managing approximately $70 billion in assets, holds direct cryptocurrencies or trades cryptocurrency futures.
Stablecoin regulation and mainstreaming, along with macro policy implications, will provide a significant tailwind for the growth of decentralized finance, according to State Street Global Advisors analysis. An overarching question for regulators regarding stablecoin regulation is whether to create new regulations or adapt existing banking or securities regulations. They expect policymakers to treat stablecoins under securities regulation similar to money market funds. Specific rules are aimed at ensuring standardization, limiting systemic risk and enhancing protection for investors and households.
Read the full digital digest here.
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