Client Demand and 'Negative Events' Pushing TradFi Institutions Towards Crypto - Bitrue Chief Strategy Officer

By:Saviour Wealth IT, Finance & Investment Consultant

Traditional financial institutions (TradFi) are increasingly looking to gain exposure to crypto assets, driven by client demand and a growing belief that crypto represents a new asset class.

In a recent interview, Robert Quartly-Janeiro, the chief strategy officer (CSO) at crypto exchange Bitrue, attributed this shift in sentiment to two key factors:

• Client demand: Quartly-Janeiro noted that Bitrue has seen a significant increase in demand for crypto assets from institutional clients in recent months. This is likely due to a number of factors, including the growing popularity of crypto among retail investors, the increasing adoption of crypto by businesses, and the development of new institutional-grade crypto investment products.
• Negative events: Quartly-Janeiro also believes that the recent negative events in the TradFi world, such as the rising cost of living and the ongoing conflict in Ukraine, are pushing TradFi institutions towards crypto. This is because crypto assets are seen as a hedge against inflation and geopolitical instability.

Quartly-Janeiro's comments are echoed by other industry experts. For example, a recent report by Fidelity Investments found that 76% of institutional investors are now interested in digital assets, up from 55% in 2021.

The increasing interest from TradFi institutions is a positive sign for the crypto industry. It suggests that crypto is becoming more mainstream and that institutional investors are starting to recognize its value as an investment asset.

My Personal Opinion

As an IT, Finance & Investment Consultant, I believe that the increasing interest from TradFi institutions is a validation of the crypto industry's potential. It shows that crypto is not just a speculative asset, but a serious investment opportunity.

I believe that crypto assets have the potential to revolutionize the financial industry. They offer a number of advantages over traditional financial assets, such as greater transparency, lower fees, and faster transaction times.

I am also excited about the potential of crypto to democratize finance. By making financial services more accessible and affordable, crypto can help to level the playing field and create new opportunities for people all over the world.

Of course, there are also some risks associated with investing in crypto assets. Crypto is a volatile asset class, and its prices can fluctuate wildly. Additionally, the crypto industry is still relatively new and evolving, and there is some regulatory uncertainty.

However, I believe that the potential benefits of investing in crypto outweigh the risks. I encourage my clients to do their own research and consider investing in crypto as a part of their overall investment portfolio.

Here are some additional things to consider when influencing your clients:

• Educate them about crypto: Many people are still unfamiliar with crypto and its potential benefits. It's important to educate your clients about crypto and how it works.
• Help them to develop an investment strategy: Once your clients understand crypto, you can help them to develop an investment strategy that is aligned with their individual needs and goals.
• Monitor the market: The crypto market is constantly evolving, so it's important to monitor it closely and keep your clients informed of any changes.

By educating your clients and helping them to develop an investment strategy, you can help them to make informed decisions about investing in crypto.