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<\/p>\nA recently published study by the Basil Committee on Banking Supervision (BCBS) has revealed that the world\u2019s top banks have exposure to around $9 billion worth of cryptocurrencies, including Polkadot ($DOT), Cardano ($ADA), and $XRP.<\/p>\n
According to the study, titled \u201cBasil II Monitoring report\u201d from the Bank of International Settlements (BIS), the two largest cryptocurrencies by market capitalization, Bitcoin ($BTC) and Ethereum ($ETH) are the ones banks are most exposed to, with the flagship cryptocurrency making up 31% of the reported crypto exposure, and ETH making up 22% of it.<\/p>\n
BTC and ETH combined notably make up \u201calmost 90% of reported exposures,\u201d while other popular cryptocurrencies were also included in the report. Polkadot ($DOT) made up 2% of reported exposure, while $XRP made up around the same percentage. Cardano\u2019s $ADA token made up 1% of exposure, as did Solana ($SOL).<\/p>\n
Other cryptocurrencies in the report were Litecoin ($LTC) with 0.4% of reported exposure, and Stellar ($XLM), with around 0.4% of exposure as well.<\/p>\n
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The study detailed that total cryptocurrency exposures from banks made up around \u20ac9.4 billion, equivalent to roughly $9.2 billion. This means that cryptoasset exposure \u201cmake up only 0.14% of total exposures on a weighted average basis across the sample of banks reporting exposures.\u201d<\/p>\n
The report added that when considering the whole sample of banks included in the report, the amount shrunk to 0.01% of total exposures. These banks\u2019 exposure to the cryptoasset sectors was divided into three categories: cryptocurrency holdings and lending, clearing and market-making services, and custody, wallet, or insurance services.<\/p>\n
The largest activity adding to banks\u2019 crypto exposure was custody or wallet-related services. These financial institutions\u2019 exposure is likely related to cryptocurrency investments from institutional investors gaining exposure to the space without managing their own private keys.<\/p>\n
As CryptoGlobe reported institutional investors have, throughout the month of September, added to bets against the flagship cryptocurrency Bitcoin ($BTC) by buying up products shorting BTC, while also betting on products offering exposure to $XRP, $ADA, and multiple assets.<\/p>\n
According to CryptoCompare\u2019s latest\u00a0Digital Asset Management Review\u00a0report, for the first time in two years, the average daily volumes for all exchange-traded products (ETPs) on the report dropped below $100 million after falling nearly 80% from this year\u2019s high recorded in January.<\/p>\n
The report details that institutional investors looking to gain regulated exposure to the digital asset space are \u201clikely to turn to the growing number of crypto investment products\u201d such as those contained in the report, and adds that these make \u201ccrypto more accessible to investors because they can be traded on traditional stock exchanges.\u201d<\/p>\n
Per the report Short Bitcoin Products, which \u201ccorrespond to the inverse (-1x) of the daily performance of the Bitcoin futures index\u201d saw a rise in their assets under management in September, with the ProShares Short Bitcoin Strategy ETF (BITI) seen an AUM rise of 43.9% to $98.8 million, while the 21Shares Short Bitcoin ETP (SBTC) saw an increase of $18.9 million.<\/p>\n