“THE CRYPTO-ING”: FINANCIALS PICKING UP PACE TO CRYPTOS

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Two of the largest U.S. banks, Wells Fargo and JPMorgan, registered Bitcoin funds with the Securities and Exchange Commission (SEC) this past week.

The move represents the latest in a growing trend of traditional financial institutions looking for exposure in crypto markets, which, while volatile over their history, have undergone explosive growth. Another major bank, BNY Mellon, recently revealed intentions to establish a team to develop a custodial system.

Bitcoin, of course, is the oldest as probably best understood of all cryptocurrencies.

JPMorgan cautioned investors earlier this year against adding Bitcoin to their portfolios. But now the firm is reportedly working with a well known technology and financial services company, New York Digital Investment Group (NYDIG), on the bitcoin fund.

Wells Fargo is also teaming with NYDIG.

Some believe the fast changing world of banking introduced by DeFi and other developments is causing these leading banks, and other institutions like Goldman Sachs to put money into cryptocurrency companies as a hedge against the prospect of a “bankless” future.

2020 Marked A Change

Some analysts predicted that traditional financial players talking down cryptocurrencies was at least partly a move to suppress enthusiasm while they caught up, working on strategies, platforms and products.

While that might have some truth to it, there’s no doubt that traditional financial institutions have been coming to terms with the fact that cryptos, permissionless blockchains and the dApps built on networks like Ethereum, Solana, Cardano and others, are not a flash in the pan.

And Bitcoin, the oldest crypto, is still king.

Before 2020, banks were restricted from crypto investments. The Office of the Comptroller of the Currency (OCC) had prohibited banks from storing cryptocurrencies. But that changed last July. As a result, banks have been given a green light to experiment with holding cryptos.

Gerald Celente in 2017 predicted that banks would be forced to reconcile with cryptos as a potent new reality:

“JPMorgan Chase CEO Jamie Dimon, like many business-establishment peers who persistently sound the death knell for cryptocurrencies, is wrong.

“As the Trends Research Institute has been forecasting, volatility in digital currencies will continue. Some offerings will crash. But the long-term trend is a crypto, not a fiat-currency-driven, future.

“It's a new world millennial order; cash is not part of their lives. Digital currencies to them are what gold once was for baby boomers - safe, comfortable and familiar.”

(“Cryptos: Millennial gold,” 4 October 2017)


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2 Comments
  1. Orion Paul 1 year ago

    Crypto Currency is here to stay. Just like the net in the 90s. Most coins will eat shit, but Bitcoin and Privacy coins like Monero and Pirate Chain are gonna be the next wave. The kids believe in it! Like the old song says, the children are the future… They were raised on video games, they could give 3 shits about gold and silver, thats for us “old foggies”! For over 10 years now the powers that be have tried everything to kill it, but like Max Keisser says, tic toc, next block! The smart will sorround himself with all the basics plus bitcoin! The beauty of it is that you need not be rich or a genuous to own and use it. If you can use a smart phone, you can rock some crypto and give the finger to the NWO, Bill Gates and Charles Schwab. Unless you think you’ll be happy owning nothing… \m/

  2. […] institutional moves to cryptos in numerous articles, such as “CRYPTO SANITY” (16 Feb 2021),  “‘THE CRYPTO-ING’: FINANCIALS PICKING UP PACE TO CRYPTOS” (24 Aug 2021) and […]

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