From Retail to Institutional: The Shift in Crypto Investment

To enable appropriate safeguards and plans that can be built, investment time horizons have been extended, with most organizations planning to scale investments over the next two to three years. However, institutions see tokenization as highly promising, and are looking to move more quickly toward investing in tokenized assets, as well as tokenizing their own assets over the next two years. Hedge funds, https://www.xcritical.com/ in particular, are the most bullish on their timeline to begin investing. KPMG International Limited is a private English company limited by guarantee.KPMG International Limited and its related entities do not provide services to clients. Our simple and tailored approach compliantly navigates international clients through the evolving digital assets environment. Companies and financial institutions are racing to meet rising demand, fueled by consumers seeking higher returns, market diversification, and passive income opportunities like staking.

Fidelity allows digital asset trading for retail

(Hong Kong, August 28, 2023) – OSL, the first SFC-licensed and insured digital asset platform, proudly unveils a number of compelling promotions and initiatives to commemorate its recent retail license uplift. This significant milestone opened the door for retail investors on August 3 enabling them to explore the world of digital assets, initially focusing on prominent digital assets like Bitcoin and Ethereum. Enjoy efficient and familiar trading with OSL’s support for the widely used FIX 4.4 protocol. Our platform supports order management and market data, as well as a drop copy service, making it simple for clients who have traded other asset classes to transition Decentralized finance to digital assets.

Press Briefing: 6th Annual Global Crypto Hedge Fund Report 2024

Cryptocurrencies act as virtual currencies in which transactions are recorded on the blockchain. Blockchains are secured by cryptographic algorithms that require solving complex math problems. The value of a cryptocurrency is determined by the market participants who trade in the asset, also known as supply and demand. Out of the many types of crypto, the most-traded coins are usually Bitcoin and Ethereum, which also hold the biggest market caps. These are just a few examples that illustrate the variety and richness trade digital asset of digital assets to be traded within and surrounding the different strands of the financial-technological ecosystem.

Dedicated strategies are needed

Robinhood supports more coins than any other broker we review and boasts some of the lowest crypto trade fees — $0 commissions and a 0.45% spread. Not to mention, Robinhood offers a dedicated self-custody wallet, Robinhood Wallet, which gives you full control over your crypto. Uphold is unique in that it enables direct trading between cryptocurrencies, fiat currencies and precious metals. This means you can trade directly between any two of these assets without having to first go back into a common asset like US dollars. Buy gold, silver, platinum and palladium, with instant liquidity into 27 national currencies and no custody fees.

Download the full article on: Staying the course institutional investor sentiment toward blockchain and digital assets

• With RFS and RFQ, our clients can choose the best pricing method to meet their individual needs.
• Regulated and widely trusted, Crypto.com is a top choice for all levels of crypto traders and investors.
• We’ve given you a headstart by sharing some of our picks for the best crypto exchanges in the US at the top of this page.
• AIMA set up the Alternative Credit Council (ACC) to help firms focused in the private credit and direct lending space.
• However, once you have purchased what you consider to be a sizeable amount of digital assets, you may want to consider transferring the private keys to those assets to a self-custodial wallet.

Digital assets often come with programmable conditions known as smart contracts, which are self-executing based on mutual agreements without an intermediary. It opens the gateways for decentralized applications into realms far more critical than just mere transactions; in, for example, decentralized finance (DeFi) and supply chain management. For example, NFTs have made a lot of difference in the world of art and entertainment, allowing their creators to monetize through ownership rights and royalties for digital content. For many traditional banks, moving into the digital custody space is not without its challenges, not least because many providers are struggling with achieving  connectivity and interoperability between their legacy technology stacks and new systems.

In a world where everything is going digital, it’s no surprise that digital assets are becoming mainstream. Retail and institutional investors alike are already harnessing the potential for digital assets to revolutionise traditional finance, with practices such as tokenization. Digital assets present novel investment opportunities as well as innovative stores of value and mediums of exchange. This is where strategic partnership with infrastructure technology providers come into play. The speaker continued that the bulk of cryptocurrency trading is being driven by retail users, and not institutions.

Singapore and Hong Kong are widely considered to be leaders in providing a clear regulatory pathway for digital asset custody. Increasing regulatory clarity will enable firms to (re)assess their strategic approach to new forms of money and payments in 2025. This includes where to focus efforts, when to build capabilities, and the jurisdiction(s) to focus on. Five forms are emerging – stablecoins, retail and wholesale CBDCs, tokenised bank deposits and open banking enabled A2A payments – although the level of clarity varies (Figure 3).

Unlike conventional bank accounts, which are tethered to their owners’ identities and under the custody of a third-party institution, digital asset ownership in most cases vests with the individual and is therefore controlled by the user. Compliance with operational resilience rules also demands significant resources, as underscored by the three-year implementation timeline for firms already in-scope. Identifying and addressing third-party vulnerabilities will be a key challenge, especially those related to Distributed Ledger Technology beyond firms’ direct control. A helpful starting point is mapping the systems, processes and third parties underpinning services. Beyond meeting compliance deadlines, the window for integrating regulatory considerations into business strategies for initiatives launching from 2026 to 2028 is closing.

View traders participating in the program, scope out their portfolios, stats, risk scores and more and choose a trader to copy, all at no extra cost. Trade 21 cryptos on eToro for a straightforward 1% buy and sell fee and take full ownership over your crypto with eToro Money, eToro’s crypto wallet. All providers on our list are US government-regulated and licensed to operate within the US. Many providers on our list also carry crime insurance covering fiat currency and digital asset theft. Whether you’re a beginner or an experienced investor or trader, finding the best crypto exchange is crucial for safe and efficient trading. Fidelity contributes to this by offering its 40 million customers access to this growing asset class in an affordable and straightforward way.

Backed by Asia’s leading public fintech and digital asset company, BC Technology Group (863.HK), OSL is the world’s first SFC-licensed and insured digital asset platform. Founded in 2018, OSL has an established history in the sector and is recognised by many as the leader in providing comprehensive regulated and licensed digital asset solutions. Spot cryptocurrency represents the most common investment, with bitcoin (BTC) and Ethereum (ETH) being the most prevalent. It is important to note, however, that 60% of institutions invested in spot cryptocurrency currently are also invested in cryptocurrencies beyond BTC and ETH. Founded in 2018, OSL has an established history in the sector and is recognized by many as the leader in providing comprehensive regulated and licensed digital asset solutions.

Top asset classes or security types of interest include public funds, private funds and real estate funds, and 60% of institutions surveyed would tokenize on a public-permissioned blockchain. Our institutional-grade system supports lightning-fast trades with ultra-low latency matching and seamless connectivity. Experience secure, efficient, and frictionless digital asset trading with access to deep liquidity, multiple currencies, and a diverse range of tokens. Trust in our commitment to compliance and enjoy competitive spreads and trading block sizes for both retail and institutional investors. Institutions see value in the ability to diversity assets, as well as the potential for asymmetric returns when investing in crypto/digital assets.

It is already clear, however, that compliance with operational resilience and Consumer Duty rules will be a priority for the Financial Conduct Authority (FCA). Although not yet mandatory, firms with ambitious growth plans may benefit from starting preparations for these regimes in 2025, freeing up resources to implement digital assets-specific rules later. In our experience, most firms committed to the EU have decided their EU head office location and are focussed on securing licences. In licensing processes, regulators are intensifying scrutiny of group structures. However, with publication only expected in H2 2025, the plan offers little immediate relief for firms navigating multiple regulatory priorities and reforms. However, with the advent of crypto, there has been a disruption in this age-old paradigm, with the constant availability of these digital assets representing a complete democratization of finance in the digital age.

They could be used for cross-border transfers or for conversion into fiat money or cryptocurrencies. Despite being a bone of contention in the crypto space, various central banks have endorsed the concept, including Australia. Among digital asset examples, commercial real estate tokens are asset-backed tokens. These digital assets convert real estate’s value and ownership rights into tokens, making it possible to trade real estate in fractional (smaller) units.

Fidelity Investments has opened access for general investors to purchase Bitcoin and Ether without hindrance. Besides access to new investors and new capital as the primary reason to tokenize assets (53%), increased liquidity (47%) and operational efficiencies (40%) were other top reasons for institutions interested in tokenizing their assets. Enabled by data and technology, our services and solutions provide trust through assurance and help clients transform, grow and operate. And, at the beginning of November, payments acceptance provider Ingenico began a partnership with Crypto.com to bring cryptocurrency payments and merchant services to users of the Ingenico platform, allowing merchants worldwide to accept crypto payments.