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Institutional investors are increasingly bullish on Ethereum: report

  • 60% of respondents are convinced Ethereum will a better investment in 2023. 
  • Bitcoin is also seen as one with huge potential, while other coins attracting institutional investors are Polkadot, Cardano and XRP.
  • Speculative interest and exposure to distributed ledger technology are main reasons for increased interest.

Ethereum is the second largest cryptocurrency by market cap, with its market worth nearly $190 billion. 

While it remains behind Bitcoin, whose market cap as of 27 January 2023 stood at over $482 billion, institutional investors are reportedly more bullish on the cryptocurrency’s prospects in 2023 than was the case going into the third quarter last year.

60% of institutional investors are bullish on Ethereum

According to the latest survey results published by digital assets manager CoinShares, bullish sentiment around the top altcoin by institutional investors has increased by 20% since the last survey in October 2022.

The asset manager’s report states that 60% of respondents from major wealth majors, family offices, hedge funds and financial advisors, believe Ethereum has a better growth outlook in 2023. In October, when CoinShares published its previous Digital Asset Quarterly Fund Manager Survey, 40% of respondents had indicated a bullish outlook for the leading smart contracts platform.

Comparatively, 30% of the survey participants were bullish on Bitcoin – down from 40% in the previous report. But while most of the big money is betting on ETH, CoinShares highlighted that a growing number of investors are invested in both assets.

Other digital assets that institutional investors are eyeing in 2023 are Polkadot, Cardano, XRP, Solana and Polygon.

Why are institutional investors adding crypto to portfolios?

According to CoinShares, the main reasons behind increased interest and investment in digital assets are speculation and the need to gain exposure to opportunities across the distributed ledger technology ecosystem. 

Notably, more clients saw the recent crypto crash (after the collapse of FTX) as an opportunity, with a growing number directing fund managers to add crypto to their positions. Bitcoin and Ethereum are the most popular.

But the asset manager says crypto’s increased correlation to equities might be the reason fewer investors cite diversification as a key factor.

“When asked what reasons prevented investors from investing in digital assets, it is interesting to note that reputational risk saw a significant decline while regulation is still an important consideration,” CoinShares noted.

The post Institutional investors are increasingly bullish on Ethereum: report appeared first on CoinJournal.

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Crypto bank Silvergate suspends preferred stock dividend

  • Crypto-friendly bank Silvergate announced its suspended payment of dividends on its series A preferred stock.
  • The company’s shares fell more than 11% pre-market after the announcement.
  • Silvergate reported a $1 billion loss in the fourth quarter and also cut its staff by 20% amid the crypto bear market and impact of FTX collapse.

Silvergate, a crypto-friendly bank that’s lately hit a rough stretch following the collapse of crypto exchange FTX, has suspended dividend payment on its preferred stock.

Specifially, the crypto bank says it is suspending payment of dividends on the its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A. The US-based company is taking the move to help preserve capital following the effects of recent turbulence across the crypto ecosystem.

“This decision reflects the company’s focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset industry,” the firm said in a press release.

According to the news release, the Board of Directors will re-examine the company’s payment of quarterly dividends at a later date, with this dependent on how “market conditions evolve.”

Silvergate shares fall sharply

Following Friday’s news, shares of parent company Silvergate Capital (NYSE:SI) fell more than 11% in early morning trading, hitting lows of $12.55.

Despite a decent run for crypto in the last few weeks, where Bitcoin broke above $23k, Silvergate’s shares have struggled amid negative sentiment.

At the time of writing, the shares were trading at around $12.93, still more than 8% down on the day. The company’s stock is down nearly 27% year-to-date, with the losses coming on the back of a brutal bear market for the broader cryptocurrency industry.

As previously highlighted, Silvergate reported a $1 billion loss during the fourth quarter and moved to slash its workforce by 20% as the negative impact of FTX’s implosion hit the company. 

The crypto bank also reported that customer digital assets deposits had fallen significantly as uncertainty swept through the crypto market.

The post Crypto bank Silvergate suspends preferred stock dividend appeared first on CoinJournal.

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Leading digital wealth platform Yield App acquires Trofi Group

  • Yield App is a digital wealth platform that offers safe custody of digital assets.
  • The platform allows customers to exchange and earn on their assets at market-leading rates.
  • The acquisition adds structured products to the Yield Apps product suite.

Digital wealth management platform Yield App yesterday announced it has acquired Trofi Group, a platform that offers structured solutions for cryptocurrencies. The acquisition brings four new structured products to the Yiled App product suite.

Besides providing customers with additional products, the move also makes Yield App one of the leading digital wealth platforms.

What specifically does Trofi Group bring on board?

The team at Trofi Group boasts of 30 years experience in derivatives desks at JP Morgan and HSBC. Now that they will join hands with Yield App in building best-in-class crypto-structured products means Yield App will provide a superior suite of products.

Commenting on the acquisition, the CEO of Yield App, Tim Frost, said:

“The acquisition of Trofi Group establishes Yield App as a pioneer within the crypto-structured products arena, making us one of only a few platforms to bridge the gap between traditional finance and crypto. We are grateful to the team at Trofi for trusting us to continue their excellent work in bringing enhanced yield structured products to crypto. We look forward to leveraging the team’s vast experience to expand Yield App’s suite of digital wealth management solutions.”

Following the acquisition, Yield App will be launching a beta version of a dedicated investment app duped “Trofi, powered by Yield App.” The app will allow customers to access Yield App’s first crypto-structured products through four different strategies and other products including the dual currency, the range, Sharkfin, and the Target.

Dual currency allows investors to acquire cryptocurrencies at a lower price at a predetermined point in the future, while also earning yield. The Range is a structured product that allows investors to generate yield assuming the markets will remain within a specified price range. Sharkfin allows investors with a moderately bullish view of future prices to earn a guaranteed minimum coupon with the potential to generate a high yield at maturity. The Target product allows investors with a bullish view of the future price of a cryptocurrency to earn a high yield.

The post Leading digital wealth platform Yield App acquires Trofi Group appeared first on CoinJournal.