2022 07 12 Steve Emerald IMG 0096 e1641837738107 Banking on Bitcoin: Community Banks Embrace Cryptocurrency Despite Downturn

Banking on Bitcoin: Community Banks Embrace Cryptocurrency Despite Downturn

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-The Emerald Finance and Banking Innovation Funds objective is to target banks that are lending to crypto or blockchain companies, or ones that are creating their own tokens.
-The fund has decreased positions in miners significantly since the beginning of the year.
-Many banks remain interested in exploring the space even as crypto market remains volatile.
-Russell expects more banks to get involved in blockchain for mortgage-related activities.
-The portfolio manager noted that the mutual funds objective makes it unique from many of the ETFs that focus primarily on the same crypto stocks, such as miners and exchanges.
-Russell noted that the continued fallout from the crash of TerraUSD (UST) and LUNA, as well as Three Arrows Capital filing for bankruptcy, will likely lead to the fund continuing to exit or adjust certain positions.
-Though Russell declined to comment on specific companies, he noted that the fund will likely continue to exit or adjust certain positions in light of recent events.
-Russell noted that the market reacts to a lot of these names as if their earnings are based off of the price of bitcoin, which has nothing to do with their earnings and how they generate revenue.
-The portfolio manager noted that the fund targets banks that are lending to crypto or blockchain companies, or ones that are creating their own tokens.
-It also focuses on banks using blockchain-based real time payments platform Tassat to offer customers instantaneous and secure payments.
-Russell noted that the fund also has crypto-centric investments, including miners Marathon Digital Holdings and Riot Blockchain, Silvergate Capital, the Grayscale Bitcoin Trust (GBTC), Galaxy Digital, Coinbase, and Voyager Digital, which filed for Chapter 11 bankruptcy last week after suspending trading and withdrawals on its network.
-The Emerald Finance and Banking Innovation Funds top holdings, as of May 31, were Customers Bancorp, Coastal Financial, Triumph Bancorp, Bancorp Inc. and Finwise Bancorp.

 

 

2022 07 12 Steve Emerald IMG 0096 e1641837738107 Banking on Bitcoin: Community Banks Embrace Cryptocurrency Despite Downturn
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