TradFi Giants Ditch 'Long Bitcoin, Short Bankers' Stance
The era of 'long bitcoin, short the bankers' is officially over, as traditional finance (TradFi) giants are now embracing digital assets. According to Bitwise CEO Hunter Horsley, this shift shows that large firms are expanding crypto access even during a bear market. He noted that two financial institutions managing more than $1 trillion each approved crypto products this summer.
Horsley stated, 'Everyone just put on the crypto jersey,' and 'This summer two financial institutions that manage over a trillion dollars of investor savings and wealth looked at this space in a bear market and said, we want to make this available to our clients.' However, he did not reveal the names of these firms or what the approvals allow.
Sygnum Chief Investment Officer Fabian Dori agreed that the relationship between banks and crypto has changed. He attributed the shift to client demand and clearer rules, calling it 'structural rather than cyclical.'
Several major financial institutions have already entered the space, including Swissquote, DBS, BBVA, BNY Mellon, Nubank, LGT, St.Galler Kantonalbank, Santander, Zürcher Kantonalbank, Standard Chartered, Charles Schwab, SoFi, and Morgan Stanley. Anchorage Digital CEO Nathan McCauley stated that its client roster has increasingly reflected the convergence of traditional and decentralized finance over the past two years.