State Street, the investment management firm, recently said that even though prices in the crypto market had declined, it did not appear to deter institutional investors from jumping on the bandwagon.
According to an executive at State Street, these investors believe that the asset class is going to stay, so they are not shying away from it.
A leading investment management firm, State Street recently disclosed that institutional demand for cryptocurrency was unwavering even though the market is experiencing a sell-off.
The product lead of State Street Digital for the Asia-Pacific region, Irfan Ahmed said that the institutional clients of the banking giant were still eager to invest in crypto and blockchain technology.
He stated that during the months of June and July when things had heated up in the crypto market, institutional investors may not have doubled down.
However, he said that they did not appear to be deterred from making strategic bets on crypto itself. The executive said that this clarified that they believe that crypto is here to stay.
The financial giant is operating in more than 100 global geographic markets and its workforce is around 40,000 strong.
As of June 30th, the total assets under administration or custody were around $38.2 trillion, and the assets under management were valued at $3.5 trillion.
State Street Digital is recognized as the company’s digital arm, and it offers solutions for a variety of digital assets, including central bank digital currencies (CBDCs), digital cash, stablecoins and cryptocurrencies.
According to Ahmad, crypto products are now being offered by some prominent investment firms, like Goldman Sachs, and they are expected to make further moves in the crypto space.
Goldman Sachs introduced its first loan backed by Bitcoin back in April. Blackrock, known as the biggest asset manager in the world, also rolled out a spot bitcoin private trust last month.
The company said that even though there was a downturn in the crypto market, institutional clients are taking a lot of interest.
The executive at State Street also disclosed that plenty of institutional investors had also asked about crypto products.
He said that their clients had discussed the possibility of launching crypto products and the kind of support they can expect from the financial giant in this process.
Last year in July, State Street announced that it was expanding its crypto service because of rising demands from traditional funds.
It should be noted that crypto exchanges have also reported an increase in demand from institutional investors.
The chief executive of crypto exchange Bitstamp stated last month that their trading platform had seen a massive rise in interest in crypto from institutional clients.
Binance also introduced a new platform in June, which was aimed at institutional and VIP crypto investors in order to provide them with better and more customized support.
Institutional interest in the crypto market had begun to increase in the previous year when prices had touched all-time highs.