Bank of America, one of the biggest Wall Street banks, has launched digital asset research in response to strong investor interest.
A number of Wall Street banks have launched cryptocurrency offerings in response to institutional interest in digital currencies. Bank of America follows Goldman Sachs and other institutional giants in offering crypto services to keep up with digital assets.
Alkesh Shah (head of Global Cryptocurrency Strategy and Digital Asset Strategy) commented on the BOA’s decision to launch digital asset research.
“Bitcoin’s importance is not the only reason why it is important. But, the digital asset ecosystem is far more. Our research explores the implications across all industries, including finance, technology, and supply chains.
BoA’s report, “Digital Assets Primer – Only the First Inch”, explains how the DeFi and crypto industries have become “too big to ignore”. In the report, it is stated that the DeFi ecosystem received nearly $17 billion in institutional investor funding in the first half of 2021.
Bitcoin prices surged following comments from Jerome Powell, Federal Reserve Chair, that he did not intend to ban crypto. Even though extreme volatility was perceived by institutional investors as too risky to invest in, digital assets like Bitcoin have performed well.
Candace Browning, BofA Securities’ head of global research, spoke out about the rise of crypto during an interview on Bloomberg TV’s “Surveillance” show.
“An increase in crypto-related corporate earnings calls has seen a jump from 17 to 147 last year. This isn’t just Bitcoin, it’s digital assets, and it’s creating a whole ecosystem full of new companies and opportunities as well as new applications.
Goldman Sachs initially set up a crypto desk in 2018. It was halted after the fall in cryptocurrency prices, but it was reopened in March 2018 amid the growing interest in technology. Despite the recent bearish downtrend, investors seem to be optimistic about it. Companies have grown and developed greater trust with investors as a result of the maturation of crypto markets. With the recent uptrend sparking renewed support and interest, financial investors who are already familiar with crypto services may be willing to join the growing number of institutions offering them.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment, or financial advice.