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- Sygnum Bank, a prominent crypto bank headquartered in Switzerland, reported a profitable first half of 2024, attributable to a sharp increase in cryptocurrency trading activities.
- The bank experienced a doubling in crypto spot trading volumes compared to the previous year and saw a remarkable 500% surge in crypto derivatives trading.
- Martin Burgherr, Sygnum’s Chief Client Officer, attributed this surge to the approval of Bitcoin and Ethereum ETFs in the U.S., marking an important milestone for the crypto industry.
Discover how Sygnum Bank’s strategic moves and compliance with European regulations position it for further growth in the global cryptocurrency market.
Explosive Growth in Cryptocurrency Trading Volumes
In the first half of 2024, Sygnum Bank experienced a considerable increase in cryptocurrency trading volumes, driven by heightened demand for digital assets. The bank, managing $4.5 billion in client assets, saw a significant rise in both crypto spot and derivatives trading. Notably, the crypto spot trading volumes doubled, while crypto derivatives trading skyrocketed by 500% compared to the same period last year, as reported on July 25.
Impact of Bitcoin and Ethereum ETFs
Martin Burgherr, Chief Client Officer at Sygnum, attributed this exceptional growth to the recent approval of Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States. He highlighted that the introduction of these ETFs has prompted a surge in demand for cryptocurrencies, further boosting trading volumes. Sygnum has leveraged this development by offering a range of crypto-related exchange-traded products, including the Sygnum Platform Winners Index ETP, featuring major digital assets like Bitcoin, Ethereum, Solana, Cardano, and Polkadot.
Sygnum’s Strategic Goals and Regulatory Compliance
Looking forward, Sygnum Bank aims to align completely with the European Union’s Markets in Crypto-Assets (MiCA) regulation by early 2025. This alignment is part of the bank’s broader strategy to expand its footprint in the European market. Although Switzerland is not an EU member, Sygnum has secured a license in Luxembourg, enabling it to adhere to EU regulations and facilitate cryptocurrency trading across Europe.
Enhancing Market Accessibility Through Strategic Partnerships
Sygnum has formed partnerships with over 20 business-to-business banks and financial institutions, which allow a significant portion of Switzerland’s population to trade cryptocurrencies through their primary banking services. These partnerships enhance market accessibility and provide institutional clients comprehensive services, including Sygnum’s staking-as-a-service for Ethereum. This service has gained traction, with staking yields providing additional benefits outside the ETF framework.
Conclusion
In summary, Sygnum Bank’s impressive performance in the first half of 2024 underscores its strategic positioning in the rapidly evolving cryptocurrency market. The approval of Bitcoin and Ethereum ETFs has catalyzed a surge in trading volumes, while Sygnum’s compliance with European regulations and strategic partnerships paves the way for future growth. Investors should keep an eye on Sygnum as it continues to enhance its global footprint, particularly with planned expansions into the Asia-Pacific region.