Professional investors expect cryptocurrency trading to boom
Research from blockchain-based derivatives trading platform CloseCross has found that 57% of professional investors around the world responsible for around $380billion in assets under management believe the level of cryptocurrency trading will continue to rise next year with 29% expecting a significant rise and 28% expecting a slight increase.
CloseCross CEO, Vaibhav Kadikar, said: “The cryptocurrency market has gone through wild volatility this year, but professional investors still expect trading levels to increase over the next year although they inevitably have different views on the performance of individual currencies.
“At CloseCross we are seeing traders predicting price stability for Ethereum and Bitcoin indicating that the trading community does not seem to be worried about any downward price pressures and the bears are still not at play.
“Our platform offers CloseCross Crowd Wisdom which provides real-time data on the views and investments of other traders enabling investors to make a more informed forecast based on increased transparency. People can choose to follow the crowd or go on their own views.”
Optimism for the future of crypto
Recent research from the UK’s financial regulator the Financial Conduct Authority shows retail investors share optimism about the future of the market – the number of people holding cryptocurrencies in the UK has increased to 2.3 million and over half (53%) of crypto users have had a positive experience.
CloseCross’s research found more than half (51%) expect the value of Ethereum to increase over the next 12 months with 18% forecasting a dramatic increase in its value while 46% predict Bitcoin’s value to increase over the next year with 19% expecting a dramatic increase.
Around 36% forecast Bitcoin’s will drop over the next year with 16% predicting dramatic falls while 32% believe Ethereum will see prices drop with 10% forecasting dramatic decreases.
Just 21% of professional investors including hedge funds, wealth managers, institutional investors, fund managers, and IFAs believe trading levels will drop over the next year and only 4% expect a dramatic drop.
State Street launch crypto service for private funds clients
State Street Corporation is now expanding its push into the cryptocurrency industry by launching new digital asset services. It will provide digital and cryptocurrency asset fund administration capabilities for the firm’s private funds clients.
In partnership with Lukka, a leading enterprise crypto asset data, and software provider, State Street will support its private fund clients with collection, standardisation, enrichment, reconciliation, processing, and reporting related to crypto and other digital assets.
The partnership is State Street’s latest effort in the digital and crypto-asset space following the launch of State Street Digital, a division focused on addressing the industry’s evolving shift to digital finance, and comes after Lukka’s Series C funding round in December of 2020, which was led by State Street.
A rise in digital assets
“The growth in popularity of digital assets is showing no signs of a slowdown and State Street Digital is committed to continuing to build out the necessary infrastructure to further develop our digital assets servicing models to help meet our clients’ growing demands,” said Nadine Chakar, head of State Street Digital. “Our work with Lukka will leverage their software and data in order to help expand our digital and crypto asset fund administration capabilities to alternative managers is just another advancement in our digital solution set and marks a very exciting development.”
State Street will leverage Lukka’s product suite, which includes a proprietary middle and back-office data management solution, purpose-built for blockchain and crypto-asset data, as well as Lukka Reference Data, and Lukka Prime Pricing Data. This will enable State Street to consume crypto assets that are comingled within a private client’s traditional alternative investments portfolios.
“As our clients continue to adopt digital assets, such as crypto, we’ve seen increasing interest among investors for institutional quality middle and back-office offerings that support diversified portfolios,” said Jen Tribush, alternatives lead for State Street Digital.“ Lukka was the ideal partner to help provide these services given their leading position in crypto asset data as State Street continues to add to our growing offering in the digital asset space.”