One of the five largest Swiss banks, the Julius Baer Group, The company manages $ 427 billion in assets and announced this on July 20 Earnings increased $ 524 million in the past two quarters. Most likely, the bank has benefited from a Increase business income in the US and Europe.
According to the news, Julius Baer’s profit increased by 34% in the first half of 2020. This is in line with that Launched its custody service for digital assets like Bitcoin (BTC) in January.
General rise in global bank income or is the integration of Bitcoin?
The trend of the big banks in the second quarter of 2020 indicates a massive increase in business turnover. The pandemic and the introduction of stimulus packages led to a retail rally the “fear of loss” (FOMO), which currently exists on the stock exchange.
The remarkable increase in retail demand for stocks causes an increase in bank revenue, especially in its trading departments. JP Morgan, as an an example, won Net income of $ 4.7 billion in the second quarter of 2020. The United States’ investment bank recorded theirs Biggest quarterly income in history.
Jamie Dimon, CEO of JPMorgan, said on July 14:
“We posted net income of $ 4.7 billion in the second quarter, despite accumulating $ 8.9 billion in credit reserves because of our highest quarterly revenue, demonstrating the benefits of our diversified global business model.”
Like other banks, increased profits from, Julius Baer, probably comes from the high level of retail that has been registered since the beginning of April. While Bitcoin experienced high volatility from March to May. As of June, you saw planes historically low volatility.
The actions They have been significantly more volatile in the past few weeks. Sellers and buyers triggered large movements on the stock exchange at short notice. as the expectation of new stimuli increases continuously.
But as he explained Coinbase, Bitcoin saw a huge surge in retail user demand after Black Thursday. On March 13, when BTC fell below $ 3,600, Cause disasters in the cryptocurrency market.
Bitcoin’s price fell below $ 3,600 in March. Source: TradingView.com
In the next two months after the mass correction, Bitcoin rallied 190% from $ 3,600 to $ 10,440. Since Julius Baer added support for digital assets in January. This could have benefited from the volatility that Bitcoin went through between March and May.
Julius Baer said on January 21:
Julius Baer has expanded its range of services and now includes offers for digital assets such as secure storage and solutions for transactions […]. The bank can offer access to a select group of cryptocurrencies selected for their tradability, security and technical reliability. “
It seems that more and more banks are feeling more comfortable with cryptocurrencies
Since the early 2020s, more and more large financial institutions have been supporting the Bitcoin exchanges.
For example on May 12th JPMorgan Chase has added Coinbase and Gemini to its customers. This suggests that the main banks are starting to adopt this new asset class. In earlier years, the CEO of JPMorgan, Jamie Dimon sharply criticized Bitcoin and said it was “not a real thing,” CNBC said.
The increase in profits from the friendliest banks towards cryptocurrencies like Julius Bear and JPMorgan, seems to be another sign of the growing institutional demand and improve The perception of Bitcoin as an alternative asset class.