It took years for the cryptocurrency industry to gain the trust of major players on Wall Street. Many banking giants have started offering bitcoin-related services in the last couple of years. The big question is what is it falling from FTP extension with Wall Street’s confidence in the industry.
A matter of trust
Confidence goes on foot and goes on horseback. Things can move quickly and issues with FTX can set the industry back a few years. The crypto The world has long been known as the digital Wild West and unfortunately that reputation is now being reaffirmed.
If you aask the experts, then Wall Street is unlikely to jump in to bail out struggling cryptocurrency companies. “Banks are the natural enemy of the cryptocurrency industry as they are basically selling a similar product, so they are unlikely to have an interest in bailing out the industry,” said Dick Bove of Odeon Capital Group.
There is a possibility that Wall Street has joined mainly in recent years because it “had” to participate in the revolution and not necessarily because it actually bitcoins (BTC) I think. In that respect, this could be an interesting period and we should be watching Wall Street’s reaction closely.
Interest of the banks
JPMorgan and Silvergate Bank, among others, are two of the major players that have recently dived into the industry. Silvergate Bank has 850 industry clients, including 61 cryptocurrency exchanges, 541 institutional investors and 248 other types of clients.
“The banks that are in the industry will say it won’t be a problem for them and the ones that haven’t invested will probably say things like ‘we warned you’ but none of them are coming to help the industry,” Dick Bove continues.
Shares of Silvergate Bank are down at least 10% after the FTX woes. As of September 30, 2022, Silvergate Bank managed $11.9 billion of client assets, of which approximately 10% was held by FTX.
