A Northern Trust executive has stated that institutional investors are no longer interested in cryptocurrency

According to Justin Chapman, the head of digital assets and financial markets at Northern Trust, institutional traders lost interest in cryptocurrency after 2022 and haven't shown renewed interest despite this year's uptrend. He stated that institutions have turned their attention to cryptocurrencies' underlying blockchain technology, and his firm is prepared to handle client interest in crypto assets if it rebounds. Chapman said that institutional interest in cryptocurrencies has been quiet since 2022, and even traditional fund managers who were previously interested in launching crypto funds and ETPs have reduced their exposure to this particular space. 

In contrast, leaders from major financial institutions gathered at the San Francisco conference were energized about the potential of blockchain technology, particularly its ability to tokenize real-world assets. Northern Trust partnered with Standard Chartered in 2020 to launch Zodia, a crypto custodian for institutional traders. Chapman stated that his firm has the capabilities to administer crypto trading functions, but the market is currently quiet.

 He believes that Bitcoin remains in a long-term uptrend, despite struggling to break above the $30,000 level. Chapman said that Northern Trust is not currently focused on the asset class because clients are not showing an appetite to have it in their portfolios, indicating that cryptocurrency has lost its shine from an institutional perspective.

 Source: www.cnbc.com”