Standard Chartered Crypto Ventures: Launches Bitcoin Trading

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  • Financial banking giant Standard Chartered has confirmed plans to launch a Bitcoin (BTC) and Ethereum (ETH) trading desk in London.
  • The move is in line with a growing trend in institutional adoption for cryptocurrencies that could drive prices higher.

Billion-dollar banking giant Standard Chartered has revealed that it is nearing the opening of a Bitcoin (BTC) and Ethereum (ETH) trading desk in London. The banking giant is working on a new trading desk that will expose its institutional clients to the crypto industry, beginning with Bitcoin and Ethereum.

The bank is following in the strides of Goldman Sachs Group Inc. which has been trading cryptocurrencies derivatives for years. However, this has been accomplished with strict regulations with the Basel Committee on Banking Supervision proposing that banks must apply a 1,250% risk weighting to any unhedged crypto exposure.

In a detailed email, the bank noted this initiative was driven by institutional demand, adding:

We have been working closely with our regulators to support demand from our institutional clients to trade Bitcoin and Ethereum, in line with our strategy to support clients across the wider digital asset ecosystem, from access and custody to tokenization and interoperability,

As highlighted by blockchain researcher Collin Brown, this move marks a significant step in the mainstream financial adoption of digital assets.

Institutional investors have proven to be key to driving crypto prices. This has been evident with the launch of Bitcoin spot ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) has accumulated over $20 billion, making it the largest Bitcoin fund. Accumulatively, Bitcoin ETFs have amassed over $50 billion, making it the best-performing ETF product in history.

As CNF reported, Spot Bitcoin Exchange Traded Funds (ETFs) recorded a 5-day consecutive outflow on Friday, after amassing $4 billion in 19 days. However, with prices struggling since the March all-time high of $74,300, the digital asset has failed to sustain bullish momentum. For the past couple of months, the largest cryptocurrency has been trading within the $65,000 to $72,000 price range.

Institutional Adoption to Drive Bitcoin and Ethereum Prices

In the coming weeks, ETF experts foresee approving an ether spot ETF. Blockchain software technology company, Consensys has predicted that the SEC could approve S-1 filings for spot Ethereum Exchange Traded Funds (ETFs) in a matter of days. Collin Brown, a renowned blockchain researcher commented that the prediction portends a bullish signal for Ethereum, the second-largest cryptocurrency. Supporting this view, Bloomberg ETF analyst Eric Balchunas has revised his prediction, suggesting Ethereum ETFs could start trading as early as July 2.

This eventuality could draw attention to the second-largest cryptocurrency and drive prices to all-time highs.

At the time of writing, Bitcoin (BTC) is trading for $64,100 after a 3.8% drop last week.

Ethereum (ETH) on the other hand is trading $3,474 and has also suffered a setback, dropping 3.1% last week.

With institutional adoption on the rise and the number of financial giants offering services related to crypto products, this will continue positively influencing prices and ensuring long-term prosperity.

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