Bitcoin’s Big Institutional Week: JPMorgan Brings Crypto to All Wealth Management Clients & More

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 24 July 2021

⏱️ 12 minutes

🔗️ Recording | iTunes | RSS

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Summary

This week, institutional involvement was revived after the past few months’ inactivity. NLW covers new evidence for institutional interest, including: A billionaire you can’t ignore JPMorgan offering crypto exposure Galaxy Digital’s big bank backers Elon Musk’s revelation that SpaceX, the space exploration company that he founded, held bitcoin was joined by billionaire Thomas Peterffy’s admission that he holds some crypto, even hinting he sees “a small chance this will be a dominant currency.” On the wealth management end, JPMorgan has opened crypto exposure to all of its clients, a typically conservative set who tend to be passive in their investments. Lastly, London-based digital trading asset venue Galaxy Digital’s big bank backers continues to grow. The latest addition was BNY Mellon. All this together points to the fact that institutions, no matter how reluctantly, see crypto as an inevitable investment that can’t be ignored. -- Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW The Breakdown is sponsored by NYDIG https://nydig.com/nlw/ The Breakdown is written, produced by and features NLW, with editing by Rob Mitchell and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Only in Time” by Abloom. Image credit: Tiffany Hagler-Geard/Bloomberg/Getty Images, modified by CoinDesk.

Transcript

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0:00.0	So what you have here, then, is a bottom-up client demand trumping the biases of a top-down hierarchy,
0:07.1	which I think is pretty rad.
0:10.2	Welcome back to The Breakdown with me, NLW.
0:14.4	It's a daily podcast on macro, Bitcoin, and the big-picture power shifts remaking our world.
0:21.4	The Breakdown is sponsored by Nidig and produced and distributed by CoinDesk.
0:27.8	What's going on, guys?
0:29.0	It is Friday, July 23rd, and today we are talking some very interesting institutional Bitcoin and crypto news.
0:37.3	It has been a nonstop barrage of FUD for what
0:40.2	feels like months. China FUD, Tether FUD, regulatory fud, so much FUD. And I have some bad news.
0:48.4	Tomorrow's weekly recap has even more FUD around regulatory machinations. I figure that's better
0:53.7	for a Saturday when your weekend's in
0:55.3	full swing and you have more time to process. But today, well, today we have something fun. As you know,
1:01.9	there have been some meaningful questions about institutional involvement in the space. This was the
1:06.8	narrative that drove so much of the action from Q2 last year to Q2 this year. Now, interestingly,
1:13.2	the price run-up was not just spot demand from institutions buying. It was a bit of that,
1:17.7	plus a lot of traders levering up and driving the price up in anticipation of those institutions
1:22.9	coming in. Basically, traders aren't just betting on fundamentals. They're betting on narratives that they see in
1:28.3	the market, and particularly narratives that seem like other people are also betting on. For a while,
1:34.2	that trade was looking fine. Especially Q1 of this year was just announcement after announcement
1:40.9	after announcement of institutions coming in. The culmination, perhaps, was Tesla's
1:46.2	$1.5 billion treasury bet. In point of fact, though, most of these advancements were less about
1:52.5	corporate treasuries and more about trading. In retrospect, a relatively small handful of corporate
	...

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