Standard Chartered Crypto Ventures: Launches Bitcoin Trading

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

Billionaire banking giant Standard Chartered has revealed that it is moving closer to opening a trading desk for Bitcoin (BTC) and Ethereum (ETH) in London. The banking giant is working on a new trading desk that will expose its institutional clients to the cryptocurrency sector, starting with Bitcoin and Ethereum.

The bank is following the example of Goldman Sachs Group Inc. which has been trading cryptocurrency derivatives for years. However, this has been achieved with stringent rules: the Basel Committee on Banking Supervision has proposed that banks must apply a risk weight of 1,250% to any unhedged crypto exposure.

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

We have worked closely with our regulators to support our institutional clients’ demand to trade Bitcoin and Ethereum, in line with our strategy to support clients across the entire 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 mainstream financial adoption of digital assets.

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Institutional investors have proven to be instrumental in pushing cryptocurrency prices. This became evident with the launch of Bitcoin spot ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) has amassed more than $20 billion, making it the largest Bitcoin fund. Overall, Bitcoin ETFs have amassed over $50 billion, making it the best-performing ETF product in history.

Like CNF reportedSpot Bitcoin Exchange Traded Funds (ETFs) recorded a 5-day run of outflows on Friday, after accumulating $4 billion in 19 days. However, with prices struggling from March’s all-time high of $74,300, the digital asset failed to sustain the bullish momentum. For the past two months, the largest cryptocurrency has been trading in the $65,000 to $72,000 price range.

Institutional adoption to push Bitcoin and Ethereum prices

ETF experts expect to approve an ether spot ETF in the coming weeks. Blockchain software technology company Consensys predicted that the SEC could approve the S-1 filing for Ethereum spot exchange traded funds (ETFs) within 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 that Ethereum ETFs could begin trading as early as July 2.

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

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

On the other hand, Ethereum (ETH) is trading at $3,474 and has suffered a setback, losing 3.1% last week.

As institutional adoption increases and the number of financial giants offering services related to crypto products, this will continue to positively influence prices and ensure long-term prosperity.

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