In the wake of changing American politics, the crypto landscape is undergoing a fundamental change-from rapidly moving speculative efforts to long-term, anchored investment, Bitpanda CEO Eric Demuth said during a fire chat at Consensus Hong Kong on Wednesday.
Demuth said the 2024 Bull Run was not a repeat of the retail-driven 2021 cycle. Instead, it was driven by what he calls “sticky money” – institutional capital that is less unstable and more committed.
Vienna-based Bitpanda is one of Europe’s largest crypto exchanges with over 6 million users and offers shares and previous metals in addition to digital assets. The platform recently secured regulatory approval from the Financial Conduct Authority (FCA) in the UK.
In a talk about the impact of US policies under the Trump administration, Demuth claimed the government’s aggressive embrace of crypto forces global markets to adapt. “Trump -Administration is forcing everyone to do this, it’s not an option anymore, […] It’s mandatory. “
A clear sign of this shift is the thriving interest in Bitcoin ETFs, which has ballooned at nearly $ 58 billion in assets under management of just one year of trade. Demuth believes that these vehicles signalize a matured market where larger players are locking themselves in capital in the long term instead of chasing rapid gains.
While Altcoins have not picked up the same speed for adoption as Bitcoin, Demuth believes it will change when US regulation develops and alternative crypto -Tf’s get approval.
He also believes that US banks will be the next wave of adopters.
“[Crypto] has been made into one of the pillars of US economic and economic policy so you have the greatest economic power in the world [crypto] On the limelight, which means that all the banks now have to investigate it or even offer something, ”he said.
He predicts an increase in stableecoin issues directly from US banks and a uptick in tokenized assets, from government bonds to real estate.
In Europe, Bitpanda continues to focus on navigating the complex regulatory landscape of the continent, having more licenses and placing itself as a key player in a fragmented market. Demuth said the potential for new customers in Europe is large enough for the company to focus on its expansion in this region.
However, the company is expanding its B2B services, he said, licenses with its cryptoInfrastructure to banks in the Middle East as well as Europe. Large financial institutions, including Germany’s Deutsche Bank and France’s largest banking group, are already tapping in Bitpanda’s backend systems.
