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According to Bloomberg, the business of San Francisco-based cryptocurrency bank Anchorage Digital has boomed this year as financial institutions look for safer ways to store cryptocurrencies. report.
Anchorage Digital’s assets under custody increased 80% in the first quarter of 2023 compared to the previous quarter, according to the report, but the company only recently became a federally chartered cryptocurrency bank in 2021. also mentioned.
According to Diogo Monica, co-founder and president of Anchorage Digital, inflows into the company have reached “billions of dollars”, with institutions now clearly showing interest in cryptocurrencies. It is said that there is
“We are witnessing a major shift from retail dominance to institutional accumulation. .
Anchorage Digital became the first company to be federally licensed as a cryptocurrency bank by obtaining approval in 2021 from the Comptroller of the Currency as a custodian for financial institutions offering cryptocurrencies to customers.
The company is currently in talks with the recently launched institutional cryptocurrency exchange EDX Markets to provide custody services.
Increasing institutional adoption of Bitcoin
Meanwhile, the Bloomberg report also said the entry of traditional financial firms such as BlackRock into bitcoin presents further opportunities for Anchorage Digital’s business.
BlackRock filed to list a spot-based Bitcoin Exchange Traded Fund (ETF) last month, hoping to become the first company to offer an ETF backed by “physical” Bitcoin rather than Bitcoin futures contracts. board.
The trend of institutional money flowing into bitcoin and the broader cryptocurrency market is confirmed by the latest money flow data from European cryptocurrency investment and research firm CoinShares.
According to the report, $334 million has flowed into crypto investment funds over the past two weeks, of which $125 million was seen in the last week alone.
According to CoinShares, 98% of inflows over the past two weeks have gone to Bitcoin-backed funds.
The strong move towards cryptocurrencies, especially bitcoin, is clear evidence of a return to bullishness in the cryptocurrency market, and even traditionally-minded investors believe that the Securities and Exchange Commission (SEC) has made the final decision. It seems that they are betting that they may approve a spot bitcoin ETF on a rolling basis.