New Kids on the Block(chain): Cryptocurrency Funds
Across the globe, cryptocurrencies have been attracting attention since the beginning of the COVID-19 pandemic and have undergone a renaissance since their last watershed moment in 2017. Given the opportunity to innovate, numerous financial services providers globally have been taking concerted steps to provide access to this growing asset class. A dearth of regulatory frameworks, coupled with dissonant government responses to the challenges posed by decentralized finance (DeFi), have contributed to an uneven playing field, allowing some jurisdictions (Canada, most notably) to advance forward with productized ideas earlier than others.
The September Insight research feature provides an overview of the cryptocurrency product space. We examine developments in the Canadian and other global markets. In recent months, numerous interviews were conducted with industry executives from asset managers that are planning to launch cryptocurrency funds, or have already done so, alongside firms involved in custodial and operational duties. Additionally, the Trendlines article looks at the state of crypto developments in the U.S. market.