German Giant DekaBank To Offer Bitcoin Products To Institutional Clients
• January 31, 2023 2:14 pm • CommentsDekaBank is considered one of Germany’s largest asset managers as the firm currently manages a total of $390 billion.
The firm has announced that it will be partnering up with Swiss crypto services provider Metaco in order to be able to offer Bitcoin and crypto related products to its institutional clients.
This move seems pretty similar to the announcement that BlackRock has done in the past when the firm announced that it would get involved in the crypto industry.
Based on this, many investors are starting to see that asset managers all around the world are realizing that digital assets is an essential part of a portfolio that has had increasingly high demand from clients recently.
The partnership that DekaBank has with Metaco will also allow savings banks within the firm’s network to access those crypto products which will ultimately bring a significant amount of new capital to the crypto markets.
BREAKING: 🇩🇪 $390 billion German banking giant DekaBank to offer #Bitcoin and #Crypto to clients 🙌
If you can't fight them join them, if you can't stop #cryptocurrency buy them 😌😏
Bullish 🐂 📈 #cryptotrading #cryptomarket #BTC #CryptoNews https://t.co/azL5NQ8H5x
— Ajay (everything hindi) (@EverythingAjay) January 31, 2023
BitcoinMagazine reports:
“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate,” said Andreas Sack, DekaBank’s product owner for digital assets custody, per the press release.
“Today we make another important step towards laying the foundation for giving our institutional investors and millions of people in Germany access to this transformational opportunity.”
In July 2021, DekaBank was reportedly considering investing in bitcoin following a new German law that would let institutional funds, so-called Spezialfonds, put up to 20% of their holdings in BTC and other cryptocurrencies.
One of the most positive things that investors should take note of is that this announcement had came during a time where the price of BTC had dropped drastically from its all time high of $69k.
This indicates that the fundamental value of Bitcoin and other major digital assets is still strong and that the current bear market is just part of the natural market cycle of a growing sector.
New institutional capital is critical in order to sustain future bull markets and for the industry to grow overall.
Therefore, the fact that many asset managers around the world are still looking to get into the sector during a time when many retail investors are panicking means that the long term potential is still very bullish.
The recent BTC recovery continues even after the collapse of FTX and the announced bankruptcies of many other major crypto firms.
🤑🇩🇪 German banking giant DekaBank to offer Bitcoin and crypto to 1.5m retail customers and +500 institutional clients.
👉🏻 DekaBank manages $428 Billion in assets❗️ pic.twitter.com/K7kfSBf5BB
— CryptoWhale™ (@SCryptowhale) January 31, 2023
CoinDesk concludes:
While the crypto market slumped in 2022, institutional interest in the asset class has remained stable. Coinbase’s head of institutional research, David Duong, said on CoinDeskTV on Monday that institutions are unperturbed by the recent collapse of crypto exchange FTX and the contagion that followed.
DekaBank is one of Germany’s largest provider of securities services.
It focuses on custody, capital markets and asset management solutions for the German Saving Banks Finance Group.
For DekaBank’s crypto products to move forwards it needs to receive a license from apply from the country’s Federal Financial Supervisory Authority (BaFin).
JUST IN: 🇩🇪 German bank DekaBank to offer #Bitcoin & crypto to over 1.5 million clients.
— Watcher.Guru (@WatcherGuru) January 31, 2023
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