“We must not wish for the disappearance of our troubles but for the grace to transform them.” – Simone Weil ||
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IN THIS NEWSLETTER
Institutional interest from unexpected corners
BTC dominance is climbing
WHAT I’M WATCHING
Institutional interest from unexpected corners
In terms of direct investment, crypto volumes suggest that institutions are not actively involved in crypto markets just yet. But a slew of recent headlines paint a picture of growing structural interest, beyond portfolio allocation.
Just some examples from yesterday:
1) Boerse Stuttgart, the second largest stock exchange in Germany, is working with Munich Re, one of the world’s leading reinsurers, to provide insurance for institutions staking on Ethereum. The insurance will cover the risk of proof-of-stake penalties such as the partial loss of staked ETH in cases of inactivity or incorrect attestations, or the more extreme “slashing” in which validators are removed from the network, losing all their staked ETH.
It’s not just that institutions might feel more comfortable with some insurance against the technical risks – it’s that, in many cases, they will be required to have it. This offering could go a long way toward broadening not just interest from fund managers looking for a stable yield plus potential price upside. It could also boost interest from corporate treasurers looking to park capital in an asset not subject to supply inflation.
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