The post What if the banks bought crypto ETFs? appeared on BitcoinEthereumNews.com.

Now that crypto is also present in traditional regulated financial markets thanks to ETFs, in theory, banks could also invest in them.  Although it is usually believed that banking activity focuses on the custody of deposits from individuals and companies, and on credit, in reality, banks also operate as investors in the financial markets.  Crypto ETF and other funds: access for banks ETFs are literally Exchange Traded Funds, which are funds that can be traded on the stock exchange.  Technically, they are funds that issue shares, which in turn can be bought and sold on traditional financial markets.  However, there are not only Exchange Traded Funds, but there are also many other types of different funds.  One of these, for example, is that of Sovereign Wealth Funds (SWF), which are state-owned investment funds often financed by central banks. This is a type that belongs to the large category of the so-called public ownership sovereign funds.  Through SWFs, central banks, and therefore States, can also invest in the markets.  China alone owns and controls 4 of the ten main SWF in the world.  The investments of SWF According to a research by TheCityUK, in 2023 the funds managed worldwide by SWFs reached a total value of approximately 12.7 trillion dollars. For example, the funds under management of the largest asset manager in the world, BlackRock, on the same date were worth about 10,000 billion.  SWF, therefore, taken as a whole, are an extremely important entity in the financial markets and cannot be absolutely ignored.  In 2023 alone, the SWF globally invested 125 billion dollars.  Although this figure turned out to be 20% lower than that of 2022, on average from 2018 to 2023 the annual investments of SWFs have grown by 16.4%. At this moment, there is no certain news of…

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Filed under: News - @ December 15, 2024 9:24 am