Professional investors are continuing to see opportunities in cryptocurrency investment with hedge funds, family offices, and legacy money managers all contributing to the $17 billion of institutional capital invested in the space this year alone.
Professional investors are continuing to see opportunities in cryptocurrency investment with hedge funds, family offices, and legacy money managers all contributing to the $17 billion of institutional capital invested in the space this year alone.
Just last month, Apollo Capital, a fund manager with over $500 billion in assets under management, launched the Apollo Capital Frontier Fund, which will focus on NFT infrastructure, decentralised finance and multichain infrastructure. And financial heavyweights Charles Schwab, Citadel Securities and Fidelity Investments, also announced the launch of a new crypto exchange, EDX Markets. Although there is a lot of pent-up demand from institutional investors to participate in the digital asset class, most aren’t able to access the ecosystem directly, making companies like Coinbase Global, Inc, Hut 8 Mining Corp, CleanSpark, Citigroup Inc, and WonderFi Technologies Inc, which can all provide that access, attractive to investors.
Through its subsidiary Bitbuy, WonderFi which focuses on creating better access to digital assets through centralised and decentralised platforms, is now the first TSX-listed digital currency trading platform to receive approval from Canadian securities regulators to offer staking to Canadian investors.
Recent metrics show that due to the ongoing cryptocurrency and stock market downturn, investors are now holding onto their crypto at an increasing rate. Until recently, Canadians primary option for access to cryptocurrency staking was through unregistered platforms.
Bitbuy Staking, which is expected to launch 28 November, will allow users to leverage their crypto balances to earn crypto rewards through on-chain staking. Crypto assets associated with proof-of-stake blockchains like Solana (SOL) and Ethereum (ETH) may be bonded to the protocol to help validate transactions and secure the network, in exchange for receiving additional crypto assets as a reward.
At launch, WonderFi estimates that Bitbuy users will be able to stake Solana for an annualized reward rate of 5-7%. The company expects Ethereum staking and other proof-of-stake supported assets to be added in the near term. Bitbuy plans to pay earned rewards weekly, calculated from the protocol reward rate, which is variable and different for each network.
