background image background image background image

Crypto Weekly Update: Shifting institutions

Cryptocurrencies 5 minutes to read
Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  Markets saw volatility to the upside after a period of relatively low volume, however we are not out of the woods yet in regard to the crypto bear market.

This week the entire crypto market cap rose by 9% to around $120 bn. Bitcoin and Ethereum rose by 6.5% and 20% respectively.

Public institutions incoming

This week, a co-founder of the digital asset fund Morgan Creek Digital, Anthony Pompliano, announced that the firm had secured a $40 million fund “anchored” by two public pensions. The fund also includes LPs, such as a hospital system, university endowment, insurance company and private foundation. Many in the digital asset investment industry are calling for an inflow of institutional capital into the crypto market. However, many institutions are gaining direct and indirect exposure to cryptocurrencies. These institutions are in the innovators and very early adopters on the institutional adoption S-curve.

XBT pauses launch of crypto basket

The Stockholm based company XBT Provider which offers exchange traded notes that track Bitcoin and Ethereum in both SEK and EUR, shelved its plan to release a basket of crypto assets.  The firm cites its lack of knowledge in dealing with hardforks. A hardfork is a change to the underlying protocol that facilitates crypto assets, which is not compatible with previous versions of the protocol. This lack of knowledge could lead the fund to endorse the wrong asset in a hardfork resulting in a financial loss for the holders of the ETN. Investors should not expect more products from the XBT provider until the firm releases a statement stating otherwise. For now, investors can continue to get exposure to digital assets that include, but are not limited to, the four ETNs from XBT Provider.

Binance DEX

CEO of Binance exchange, Changpeng Zhao, announced that the firm will release its decentralised exchange Binance DEX for public testing on 20 February. A decentralised exchange allows users to trade with each other in a peer-to-peer basis without the need to trust a third party or each other to execute a trade. The announcement of the public test net release for Binance DEX has led to the native coin of Binance, BNB, to reach all-time highs against Bitcoin.  BNB will be used as the fuel for the decentralised exchange, similarly to how ETH is used to transact on the Ethereum blockchain. 

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.