The 'long bitcoin, short the bankers' era is officially over as Trad
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Two financial firms managing over $1 trillion each have approved crypto products this summer, marking a significant institutional expansion in crypto access despite the ongoing bear market. This shift reflects a broader trend of banks moving from opposing digital assets to integrating and distributing them through custody, tokenization, and regulated trading. Industry leaders like Bitwise CEO Hunter Horsley and Sygnum CIO Fabian Dori emphasize that the traditional opposition captured by the phrase "long bitcoin, short the bankers" has ended as banks now actively support crypto adoption.
Why it matters
The source highlights that the embrace of crypto by large institutional investors and banks signals growing client demand and regulatory clarity, making this a structural change rather than a temporary trend. This development matters because it blurs the lines between traditional finance and decentralized finance, suggesting a future where the two sectors unify into a single finance ecosystem. Although the market's speculative character remains, the addition of institutional infrastructure supports a maturing crypto landscape.
Key context
Historically, crypto enthusiasts viewed banks skeptically, often taking a stance that was "long bitcoin, short the bankers." However, early bank crypto involvement began as early as 2017 with Swissquote and expanded steadily since then, with major players like BNY Mellon, Nubank, and Standard Chartered entering the market. More recently, financial institutions prefer partnering with specialized crypto providers rather than developing their own infrastructure. This shift reflects evolving client demands and regulatory environments enabling banks to integrate crypto services more fully.
Key numbers and entities
Two unnamed financial institutions, each managing over $1 trillion in assets, approved crypto products this summer. Key individuals quoted include Bitwise CEO Hunter Horsley, Sygnum Chief Investment Officer Fabian Dori, and Anchorage Digital CEO Nathan McCauley. Named banks and financial firms involved in crypto adoption include Swissquote, DBS, BBVA, BNY Mellon, Nubank, LGT, St.Galler Kantonalbank, Santander, Zürcher Kantonalbank, Standard Chartered, Charles Schwab, SoFi, and Morgan Stanley.
What remains unclear
The source does not identify the two $1 trillion managing institutions nor specify the exact nature of the approved crypto products or the timelines for client access to these products. Bitwise declined to provide additional details about the approvals. Other than this, the source does not flag any open questions.