Bitcoin broke through $50K, but is it a bull trap? CNBC reported yesterday that “the race to cater to institutional investors who want to wager on cryptocurrency is heating up.” They went on to report about how U.S. Bank, which is currently in the top 5 largest retail banks in the nation, announced that its cryptocurrency custody service is now ready and available for fund managers. If you have been reading NMI, you will recall that we called out that the big institutions are coming, and it’s going to be faster than you think.
“The bank claims that the offering will help investment managers store private keys for bitcoin, bitcoin cash and litecoin with assistance from sub-custodian NYDIG, according to Gunjan Kedia, vice chair of the bank’s wealth management and investment services division. Support for other coins like ethereum is expected over time, Kedia said.”
This is just one more example that the big financial players in the market are beginning to accept cryptocurrencies as a legitimate asset class. US Bank is not the first and it won’t be the last. Several custody banks, that verify and safeguard trillions of dollars in traditional assets for money managers, including Bank of New York Mellon, State Street and Northern Trust have all announced all plans to custody digital assets.
Fasten your seat belts New Money Investors. We are about to have a wild ride!
“Our clients are getting very serious about the potential of cryptocurrency as a diversified asset class,” Kedia said in an interview. “I don’t believe there’s a single asset manager that isn’t thinking about it right now.”
So again, the question was “is this a bull trap?” We have been in the crypto space long enough to know that nothing is what it seems when it comes to Crypto. We could see an all out dump just as easily as we could see a giant move towards a 6 digit BTC. But the major hurdle is and remains $60K. If we can break that, the sky’s the limit, but until we do break that ATH we are cautiously optimistic.