The Bitcoin (CRYPTO: BTC) price is down more than 50% since 1 January.
And Bitcoin isn’t the only crypto to come under pressure in 2022.
Far from it.
With central banks the world over ratcheting up interest rates to tame rocketing inflation, almost every crypto (save those stablecoins that didn’t melt down) is deep into the red.
The world’s number two crypto by market cap, Ethereum (CRYPTO: ETH), has suffered a similar retreat to the Bitcoin price, down a bit more than 50% year to date.
With those kinds of losses, you might think institutional investors would be ready to throw in the towel.
But, according to global custodian bank State Street, that’s not the case at all.
Can the Bitcoin price rebound from crypto winter?
As The Age reports, State Street is engaging with investment managers looking for exposure to cryptos. And those managers haven’t been put off by the plunge in the Bitcoin price and the retreat of other digital tokens.
State Street’s track record in the crypto sphere includes its role as the fund administrator for the Cosmos Purpose Bitcoin Access ETF (CXA: CBTC). The exchange-traded fund, which aims to closely mirror Bitcoin price moves, listed on the Cboe Australia exchange on 12 May.
Digital lead for Asia Pacific at State Street Irfan Ahmad believes crypto is “here to stay”.
According to Ahmad (quoted by The Age):
During the course of the June, July period where things were really hotting up in terms of activity, we saw institutional clients not necessarily double down, but they weren’t really deterred from placing strategic bets on the asset class itself.
The takeaway from that is, I think there is a belief that the asset class is here to stay. And we, as an asset servicer, will obviously partner with our clients where they believe their ambition lies.
Now what?
Whether the Bitcoin price moves higher or lower from here, Ahmad said investors can expect new crypto products to launch in Australia in the “very near future”.
“Certainly, our clients, they’ve been speaking to us more pragmatically about how they might be able to launch products, or what our capabilities may be in the future to help them support the launch of those products,” he said.
