Crypto Update: The institutionalisation of an asset class Crypto Update: The institutionalisation of an asset class Crypto Update: The institutionalisation of an asset class

Crypto Update: The institutionalisation of an asset class

Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

This week the entire crypto market cap rose 8% to just over $265 billion. Both Bitcoin and Ethereum increased by roughly 6% since last week. Despite the increase in the market cap, the market still remains in the long term downtrend started in January this year. The market would need to sustain a significant rally above the $300bn level, with larger volumes, to signify a reversal of the trend.

Coinbase launches custody service

On Monday, Coinbase announced the launch of its crypto asset custody service for institutions. The service is a regulated service for institutions to store their digital assets offline. The minimum account size is $10 miilion, and the service charges a $100,000 set-up fee and a 10 basis point monthly fee. Coinbase Custody is only available in the US and Europe for now and has 10 customers. Coinbase hopes to have $5bn in the service by year-end.

This service is one of few that will grant institutions an avenue to invest in cryptocurrencies. 

SEC makes it easier for ETFs to get listed

Last week, the US Securities and Exchange Commission proposed a new rule that would make it substantially easier to bring exchange-traded funds to market. The rule would create a streamlined process for unleveraged and simply designed funds to get approval. This new rule could help speed up the arrival of a crypto ETF. Van Eck Associates and SolidX Partners re-submitted their bid to bring a physically-backed Bitcoin ETF to market after addressing the concerns of the SEC.

Something that it is interesting to note is that the price per a share of the ETF is equivalent to 25 bitcoins, which is five times the CME futures contact. It is safe to say that the ETF is meant for institutions and not the average retail investor. We would not expect volumes to be incredibly high considering the capital requirement for exposure in the ETF.


Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.