Genesis Trading believes that the Q2 of the year will stand out as the period when traditional institutions made a significant push into the cryptocurrency realm, likening it to a “land grab.”
On Wednesday, a report from the digital assets financial firm, which operates under the umbrella of the Digital Currency Group, spotlighted several “landmark announcements.” These announcements covered an array of applications for spot bitcoin ETFs and the introduction of numerous trading platforms and products by mainstream financial entities.
“Just as crypto mainstays like Coinbase rolled out new offerings, Q2 also heralded the arrival of an establishment armada which appears now to be docked on the shores of this asset class,” the report mentioned.
The report also touched upon the “skeptical reception” evident in the market. It said, “The truth is in the statistics about volumes, volatility, margins, price trends, and the breadth of participation. When viewed with an elongated perspective, Q2 2023 appears, therefore, to be affirmative in most respects.”
Despite Bitcoin’s relatively stable trading pattern, fluctuating mainly between $27,000 and $30,000, the firm observed a volume of activity that surpassed expectations for the quarter.
On the regulatory front, Genesis Trading highlighted the intense legal challenges that emerged over recent months. Prominent among these were the lawsuits filed by the Securities and Exchange Commission (SEC) against both Coinbase and Binance on charges of alleged legal and securities breaches.
The firm further stressed the implications of these regulatory actions, stating, “It is becoming increasingly clear that as long as there is regulatory scrutiny without clear guidance on rules and regulations, financial services firms will continue expanding their operations abroad.”