Collaboration boosts confidence in regulated crypto investing for professional European investors.
Societe Generale, one of the biggest banks in Europe, has taken a major step into the crypto space. The bank has formed a partnership with 21Shares, a well-known manager of crypto exchange-traded products (ETPs). Together, they want to facilitate the investment by investors in Germany and Eastern Europe in crypto assets such as Bitcoin and Ethereum.
In this collaboration, Societe Generale will offer critical services to 21Shares. The bank will play the role of a market maker. This implies that it will assist in purchasing and selling crypto ETPs of 21Shares. Such products are Bitcoin and Ethereum ETPs such as ABTC, CBTC, AETH, and CETH.
Through this, Societe Generale will introduce liquidity to such crypto ETPs. Investors very much appreciate liquidity since it facilitates the ease of trading and prevents violent fluctuations in prices. The more liquidity, the quicker and the cheaper the buyers and sellers will be able to trade.
This is also a good partnership since it opens more investors. The services of Societe Generale will assist 21Shares in attracting more professional investors in Germany and Eastern Europe. Such investors tend to utilize large fund platforms, which are regulated and reliable. Through this partnership with Societe Generale, the crypto ETPs of 21Shares will be visible on these platforms.
This move is an indication that major banks are gaining confidence in crypto investments. Societe Generale is well placed in the ETF and ETP business in Europe. The bank is demonstrating that it has confidence in crypto products as an investment strategy in the current world by supporting 21Shares.
Meanwhile, this collaboration is positive news for the crypto industry. Liquidity in crypto markets is a concern to many investors. At times, purchasing or selling high values of crypto at competitive prices may be challenging. Societe Generale helps mitigate these issues by offering over-the-counter (OTC) liquidity.
This will help professional investors trade Bitcoin and Ethereum ETPs more easily. This improves liquidity and translates to narrower spreads between buy and sell quotations. It also implies that the trades can occur almost instantaneously without limiting shifts to the market.
This deal is a step in the right direction at 21Shares. The company aims to make crypto investments easy and secure for investors who lean towards regulated products. Through Societe Generale, its products will be available to many individuals who are not willing to go to crypto exchanges directly.
The collaboration in Europe is considered to be an indication that the crypto market is maturing. Fintech companies and huge financial institutions are paying close attention. They believe that this is how crypto products may be integrated into regular finance.
This may in the future encourage the entry of more banks into the crypto ETP market. It might also lay better regulations on crypto investing in Europe.
On the whole, Societe Generale and 21Shares are pooling together their forces. There is one who will have the experience of banking and liquidity. The other is coming with its crypto expertise and goods. They are collaborating to ensure that investing in crypto is more stable, effective, and convenient for European investors.
Read more on Live Bitcoin News
