{"id":22927,"date":"2023-05-04T19:33:24","date_gmt":"2023-05-04T19:33:24","guid":{"rendered":"http:\/\/107235787"},"modified":"2023-05-04T19:33:24","modified_gmt":"2023-05-04T19:33:24","slug":"crypto-has-lost-its-shine-for-institutional-investors-says-northern-trust-executive","status":"publish","type":"post","link":"https:\/\/wp.worldtechguide.net\/crypto-has-lost-its-shine-for-institutional-investors-says-northern-trust-executive\/","title":{"rendered":"Crypto has \u2018lost its shine\u2019 for institutional investors, says Northern Trust executive"},"content":{"rendered":"

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Institutional investors lost interest in crypto after 2022 and even with this year’s uptrend, their appetite for it hasn’t come back yet, according to Northern Trust’s head of digital assets and financial markets.<\/p>\n

Justin Chapman told CNBC’s “Crypto World”<\/span> at the Digital Assets Week conference in San Francisco that institutions have shifted their focus to cryptocurrencies<\/span>‘ underlying blockchain technology, but that his firm “has capabilities” in place should client interest in crypto assets rebound.<\/p>\n

“Just after March the crypto market went off a cliff\u2026 the client interest has definitely gone off the same cliff in terms of institutional interest in in cryptocurrencies,” he said.<\/p>\n

“It’s definitely quiet now, since 2022, from the institutional side,” he continued. “Before that, we were seeing traditional fund managers looking to launch crypto funds, ETPs in Europe, which is the equivalent of ETFs in the U.S. \u2014 that’s really gone quiet. Even the hedge funds, who are pretty active in the markets, have certainly reduced their exposure within that particular space.”<\/p>\n

Meanwhile, leaders from the biggest financial institutions gathered at the San Francisco conference were energized when it came to the blockchain technology \u2013 specifically its potential to help tokenize real-world assets like gold for clients.<\/p>\n

The “evolution of the technology” is moving into a “better place” in terms of support from market participants, Chapman said.<\/p>\n

“As a firm, we have capabilities that sit there to administer [crypto trading] functions, but it’s a pretty quiet market at the moment and [after] most of the issues we had last year, we haven’t seen a rebound at all on the institutional side yet,” he said.<\/p>\n

Specifically, Northern Trust partnered with Standard Chartered in 2020 to launch Zodia, a crypto custodian for institutional investors.<\/p>\n

Bitcoin<\/span>