38% of Asset Managers with State Street Plan to Invest in Crypto Next Year

The cryptocurrency industry once only appealed to traditional investors for the use of blockchain technology. However, as a recent study shows, the asset managers at State Street are embracing cryptocurrency, hopeful of the sector’s progress in the coming year.

  • The survey of State Street’s asset managers was conducted by Oxford Economics, though the firm requested this research.
  • Approximately 94% of State Street’s clients already hold digital assets and related products.

While Bitcoin used to be an asset that investors stayed away from, many asset managers are considering adding it to their own portfolios nowadays. In a statement by the managing director of digital product development and innovation at State Street, Jay Biancamano, it looks like next year could be lucrative for the crypto market, but none of the asset managers have pushed for the storage of crypto yet.

Biancamano stated, “We’re talking to them less about ‘Can you custody this,’ and more about how we can work together to make sure these changes aren’t disruptive to our business models.” During a bank-sponsored event on Thursday in New York, he added that there will be a clearer idea of what the financial institution plans to do with these assets and their custody next year. Once establishing that custody, State Street will be looking into fund administration, private placements, and the trading and issuance for this sector.

Even without much interest in the custody of crypto, clients of the bank are seemingly investing more of their own funds in the asset class. A survey conducted by Oxford Economics, at the request of State Street, found that digital assets and related products are already held by 94% of their clients. In 2020, the bank expects to discover that over a third of the clients plan to increase their allocation of digital assets, though just under half stated that their allocation would remain unchanged.

The interest in digital assets by State Street comes at a time that the bank is working to reduce plumping with distributed ledger technology, suggesting that Wall Street is giving up their push for “blockchain, not bitcoin.” The bank was forced to lay off over 100 blockchain developers this year, though Biancamano’s team’s responsibilities were independent of the developer team.

Biancamano stated, “Being able to provide custody and servicing around digital assets is different than building our entire backend infrastructure and prioritizing our technology stack to support Hyperledger blockchain.” He called these two endeavors “parallel paths,” adding that the company still has the ability to go into the sector without employing DLT engineers. While State Street still has the expertise of this sector within their staff, more of the focus will be “on the digital asset piece.”

The sample of asset managers in the survey included 101 clients, also finding that 62% believed that risk management could be improved with tokenization, and just over half of responded believed it would improve security. Only one-third of the clients expressed that it would increase liquidity or create democracy in investing for retail investors.

The clients of State Street seem to have a more bullish perspective on DLT than the actual company, as over half of the respondents stated that they’ll add the tech to their trading process in the next year. Only half of the same group made the same statements about artificial intelligence. Furthermore, the majority of clients (65%) agreed that financing products could be improved with the use of DLT.

These investors appear fairly confident in the changes that they expect to see from the market overall, as just under half of the respondents showed faith in the approval of a Bitcoin ETF by regulators in 2020. Biancamano added, “Honestly, institutions already have the ability to invest in these funds. VanEck is doing a private placement. WisdomTree announced the ability to invest on the Swiss exchange. I would like to see regulators become more comfortable with a bitcoin ETF… but I think the ability to invest in bitcoin in a fund or directly is there.”

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,468FansLike
2,795FollowersFollow
4,233FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Deregulating Bitcoin May Increase Speculative Trading Instead of Technical Innovation: Japan’s New Top Financial Regulator

Ryozo Himino, the new top financial regulator of Japan, wants the country to take caution over promoting digital assets, arguing that instead of promoting...

Goldman Sachs New Digital Asset Manager Reveals Plans to Bring A ‘Digital Token' to the Bank

U.S. financial giant Goldman Sachs is pushing forward its plans to launch a digital asset with the appointment of its new digital asset...

Grayscale Ethereum Trust Files with SEC to Halve the ETHE Locking Period Same as GBTC

Grayscale Investments has publicly filed a registration statement on Form 10 with the US Securities and Exchange Commission (SEC) on behalf of its Ethereum...

Florida Teenager Behind the Infamous Crypto Twitter Hack Pleads Not Guilty to 30 Counts of Fraud

Graham Ivan Clark, the 17-year old Florida teenager accused of being the main culprit of the most significant privacy breach in Twitter’s history, has...

Bitmain’s Management Feud Is Finally Affecting Business Operations; AntMiners Shipments Delayed

Bitmain’s top-level struggles cause a three-month delay in Antminer hardware. Two mutually exclusive solutions offered to customers. The constant wrangling within the largest Bitcoin...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today