BTC will soon become a standard for listed companies. Quickly join the market to deal with Fomo sentiment.
BNY Mellon, one of the world’s largest custodian banks, announced that it will launch a new token custody unit in 2021 to assist the digital assets trading, including cryptocurrencies. The U.S. licensed exchanges such as Gemini provide banking services; Daniel Pinto, the co-president of JP Morgan Chase, recently stated that the agency will eventually have to launch a Bitcoin service.
Another crypto-friendly bank that deserves attention is undoubtedly Switzerland. In fact, some of its opening measures may be earlier than the United States. In 2019, the Swiss Financial Market Supervisory Authority (FINMA) set the limit of 100 million Swiss francs in deposits, opened up qualified crypto companies to apply for banking licenses, and allowed the traditional banking industry to participate in this process; in the same year, it approved Vontobel, Swissquote and many other large traditional banks in the country have carried out crypto asset custody business, and approved SEBA and Sygnum’s banking licenses based on crypto asset business. In Asia, DBS Bank of Singapore has taken the lead in launching an integrated platform for digital asset issuance, trading, and custody. It supports exchanges between BTC, ETH, BCH, XRP and SGD, USD, HKD, and Japanese yen in advance. The BTC service will soon become the standard for listed companies, running into the market to relieve the Fomo sentiment. If the continuous iteration of traditional banks and encrypted banks is the basic ticket for companies like Tesla to enter the market, then it is necessary for many listed companies to configure Bitcoin next. Up to now, a total of 19 North American/European listed companies have allocated BTC. In addition, the“ETF-like” funds such as Grayscale and CoinShares have acted as the mainstay, managing a huge amount of BTC, and the total amount of BTC held by the two departments equivalent to a staggering 948,720 units, accounting for 4.747% of the total BTC.
It is particularly noteworthy that the Grayscale has soared in 2020. The AUM has increased by nearly 50 times, reaching the level of US$17 billion in early 2021. As of now, the AUM of Grayscale has reached US$43.626 billion.
The market expects that such funds will have more competitors in 2021. The Bitcoin ETFs which have not been reviewed in the United States also have a higher probability of being approved for launch this year, and they may have more competitive management than Grayscale.
For example, the BlockFi’s newly launched Bitcoin trust fund has an annual management fee rate of only 1.75%, which is 0.25% lower than that of the Grayscale GBTC. Recently, two BTC ETFs have started trading in the north of the United States and Canada, the first of which an ETF named BTCC recorded a single-day trading volume of US$165 million.
For listed institutions such as Tesla, they will undoubtedly have more abundant tools and channels to configure and arbitrage BTC. Purchasing BTC directly through the fully compliant securities market will surely become a more secure choice for listed institutions. As for retail investors, the SPC, VAST and even computing power launched by NGK are excellent starting assets. The unit price is not high, the risk is not high, and there is great room for appreciation in the future, compared with the high unit price of Bitcoin. It is very suitable starting asset for our small and medium players to join the market now!
