Jul 20, 2020 14:37 UTC
Jul 20, 2020 at 14:37 UTC
Top 5 Swiss Bank’s Profits up 34% After Bitcoin Integration
Julius Baer, one amongst the above-mentioned top-five Swiss bank, recorded its net profit upsurge by 34% in the first half-yearly of 2020 which accords with the bank’s introduction of a supervisory provision for digital assets like Bitcoin (BTC) in January, the same time span in which it initiated offering digital assets like Bitcoin to its clients. Julius Baer Group, manages $427 billion in assets, proclaimed on July 20 that its revenue amplified by $524 million in the last 2 quarters. The bank was mostly furthered from an escalation in trade revenues all over the U.S. and Europe.
Overall surge in global banking revenues or Bitcoin integration?
The inclination of chief banks in the 2nd quarter of 2020 suggests an enormous upsurge in trade revenues. The COVID-19 pandemic & introduction of incitement packages flocked a retail “fear of missing out” (FOMO) assembly in the stock market.
The conspicuous escalation in retail demand for stocks directed the revenues of banks, particularly for trade departments, to surge.
For Example: JPMorgan, earned $4.7 billion net income in the 2nd quarter of 2020. The U.S. investment bank posted its maximum quarterly revenue ever.
On July 14: JPMorgan CEO Jamie Dimon mentioned:
“We earned $4.7 billion of net income in the second quarter despite building $8.9 billion of credit reserves because we generated our highest quarterly revenue ever, which demonstrates the benefit of our diversified global business model.“
Similarly, the rise in Julius Baer’s profit originates from amplified altitudes of retail trading since the month of April. Whereas Bitcoin observed high unpredictability from March to May, since June onwards, it has seen low levels of volatility ever.
Stocks have been considerably more unstable in previous weeks. Sellers and buyers prompted enormous short-term activities in the stock market, as the expectation of new stimulus endlessly increased.
Bitcoin observed a big bump in demand from retail users in the repercussion of “Black Thursday.” On March 13, BTC fell to as low as sub-$3,600, causing chaos in the market.
In the subsequent 2 months since the immense rectification, Bitcoin saw a 190% rally from $3,600 to $10,440. Subsequently, Julius Baer supported digital assets in January, it might have been advanced from Bitcoin’s instability from March to May.
Julius Baer specified on January 21:
“Julius Baer has extended its service range and as of now includes digital assets offerings such as secure storage and transaction solutions. The Bank is able to offer access to a select group of cryptocurrencies, chosen for their tradability, safety, and technical reliability.“
More Banks Are Seemingly Becoming More Comfortable with Crypto:
Meanwhile initial 2020, a growing number of major financial organizations have started to upkeep Bitcoin exchanges. On May 12, JPMorgan Chase additional Coinbase and Gemini as its clients. Suggesting that major banks are beginning to hold the new asset class. Previously, JPMorgan CEO Jamie Dimon profoundly disparaged Bitcoin, saying “it’s not a real thing“
The point in profit of crypto-friendly banks, seems another signal of increasing influential demand & the refining perception of Bitcoin as a substitute.