A recent survey has uncovered a concerning trend among cryptocurrency hedge funds over the past three years, with about 75% facing banking service challenges.
Banking Issues in the Crypto Sector
A survey conducted by the Alternative Investment Management Association (AIMA) highlights that out of 160 crypto-focused hedge funds, about 120 have faced difficulties with banking services, representing approximately 75% of respondents. Issues included vague communications and account closures without clear reasons. Financial institutions often cited reluctance to engage with the volatility of the crypto market. Meanwhile, a sampling of 20 alternative investors in sectors like real estate showed no such difficulties, suggesting crypto-specific issues.
Reaction from Crypto Executives
Coinbase’s Chief Legal Officer, Paul Grewal, described the situation as systemic discrimination, questioning the deliberate exclusion of crypto entities from banking services not faced by other sectors. Matt Hougan, Chief Investment Officer at Bitwise, noted progress in openly discussing these issues.
Optimism on the Crypto Horizon
Industry experts foresee changes in the crypto market with President-elect Donald Trump's administration beginning January 20, 2025. Optimism arises from Trump’s appointments. Paul Atkins, a pro-crypto figure, is set to chair the SEC, and David Sacks has indicated the need to examine restrictive banking practices in the crypto sector. The Digital Chambers Token Alliance has urged the SEC to review ongoing lawsuits and investigations.
The upcoming changes in the U.S. administration may shift the dynamics between the crypto industry and banking sector, creating optimism among industry players.
