Seeds of Wisdom RV and Economic Updates Monday Evening 12-02-24
Good Evening Dinar Recaps,
BASEL FIGURES: AMERICAN BANKS ENABLED $201 BILLION IN CLIENT CRYPTO EXPOSURES IN 2023
This week the Basel Committee on Banking Supervision published Basel III monitoring statistics for December 2023, including crypto-asset exposures. Given this was before the launch of US Bitcoin ETFs, the data is a little stale.
However, they already show significant growth in American banks providing crypto services to clients. The statistics repeat the patterns of the previous period.
In particular, the Americas are almost entirely absent from the crypto custody space, largely because of the SEC’s SAB 121 accounting rule, which makes it prohibitive for banks to provide custody. That’s already relaxing and will likely be dropped altogether by the incoming Trump administration.
n the second half of 2023, assets under custody in Europe grew by 49% to €5.5 billion ($5.8bn) compared to the first half. At a global level, 94% of custody was for spot crypto rather than tokenized assets or ETPs.
When it comes to enabling client exposures, the roles are completely reversed. The Americas dominate providing 98% of services. The figures are on a different scale, with American banks enabling €190 billion ($201 billion) of client exposures.
American banks also substantially increased their own exposures – by almost four times, albeit from a small base. 2023 year end prudential exposures amounted to €531 million.
While APAC is viewed as a promising growth sector, by the end of 2023 it still lagged far behind. However, the figures depend on which banks are included in the dataset.
Of the four banks reporting in the ‘rest of world’ category, none reported any client crypto exposures. The banks’ own exposures were down 20% to a negligible €261 million with custody at €836 million. A lot of legislative changes have happened this year, so next year’s figures could be more interesting.
The statistics cover a total of 31 banks globally.
@ Newshounds News™
Source: Ledger Insights
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RIPPLE NEWS : WISDOMTREE SUBMITS XRP ETF S-1 APPLICATION WITH THE US SEC
▪️WisdomTree Files for XRP ETF: WisdomTree Digital submits S-1 filing for an XRP ETF, marking growing institutional interest in Ripple's cryptocurrency.
▪️XRP Demand Surge: XRP's market value rises as institutional investors, including 21Shares and Bitwise, file for XRP ETFs amid U.S. regulatory clarity.
Last week, WisdomTree Digital Commodity Services, LLC, a subsidiary of a prominent New York-based asset management firm with over $113 billion in AUM, filed for an XRP exchange-traded fund (ETF) with Delaware authorities. Earlier today, the investment firm submitted to the Securities and Exchange Commission (SEC) the S-1 filing for the WisdomTree XRP Fund.
According to the SEC filings, the WisdomTree XRP Fund will tap into the Bank of New York Mellon (BNYM) as the trustee, fund accountant, and transfer agent.
However, the prospectus for the WisdomTree XRP Fund did not reveal the ticker that will be listed on the Cboe BZX Exchange, thus indicating several updates of the filings will take place in the near term.
Growing Interest in XRP Among Institutional Investors
As Coinpedia previously reported, the demand for XRP among institutional investors has significantly grown following the anticipated crypto policy implementation in the United States.
In addition to WisdomTree, several other fund managers have filed to offer a spot XRP ETF to prospective investors to help diversify their crypto portfolios.
For instance, asset management firm 21Shares recently fueled for a spot XRP ETF. Additionally, Bitwise, Grayscale Investments, and Canary Capital have all filed for a similar product.
As a result, it is evident that the demand for XRP among institutional investors is exponentially growing amid regulatory clarity in the United States.
Market Impact
The direct impact of the high demand for XRP among institutional investors is visible on the rising market value. The large-cap altcoin, with a fully diluted valuation of about $240 billion, overtook Solana (SOL) and Binance (BNB) to become the third largest crypto asset, excluding stablecoins.
After more than six years of consolidation, XRP price is well positioned to enter its discovery phase of the macro bull cycle in the coming months.
@ Newshounds News™
Source: CoinPedia
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THE EASY WAY TO GROW YOUR WEALTH WITH XRP IN JUST 30 DAYS | Youtube
@ Newshounds News™
Source: Seeds of Wisdom Team RV Currency Facts
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