Michael Demissie, the Head of Digital Assets and Advanced Solutions at American banking giant, BNY Mellon has expressed his confidence in the digital asset industry. Demissie said the industry is here to stay despite the crypto market being down by 60% from all-time highs.
His statement was based on the premise that institutional investors still have an interest in investing in crypto. He made his opinion known at a conference that was sponsored by Afore Consulting.
Demissie supported his claims by citing a BNY Mellon survey conducted in October. The research shows that approximately 91% of institutional investors are interested in investing in digital products.
Additionally, 70% of respondents said they would increase their digital asset activity if services such as custody and execution were made available by recognized, trusted institutions. Furthermore, 88% of them said they are comfortable using blockchain technology in the long term, despite the crypto market downturn.
Despite expressing confidence in the industry, Demissie mentioned that more effort was required in Washington, D.C., in order for business participants to advance with more regulatory clarity.
Demissie’s opinion, therefore, contradicts a recent survey from JPMorgan, which indicated that investors are no more interested in crypto trading.
Current Trends in the Crypto Market
The ongoing crypto winter has brought a lot of changes to the industry. So many crypto firms are trying to make adjustments by cutting down on the size of their staffing to reduce costs.
For example, Crypto.com recently reduced its staff size by an additional 20% after laying off 260 employees in the second half of 2022. The CEO of the firm, Kris Marszalek explained that the layoff was done to position the organization for long-term profitability.
Meanwhile, Galaxy Research has predicted a tough year for crypto venture investments. The Chief Research Officer of Galaxy Digital, Alex Thorn stated that crypto and Web3 firms may find it difficult to raise money in 2023 if current figures persist.
Despite unfavorable forecasts, certain Web3 businesses continue to receive backing from industry participants. As an illustration, Sortium received $7.8 million in a recent fundraiser.