• Blackrock’s CEO Larry Fink has warned about additional bank seizures and shutdowns that could result from regulatory changes in response to the failures of several major banks in the U.S.
• Fink noted that it is too early to know how widespread the damage is, but markets remain on edge due to asset-liability mismatches.
• He believes banks will pull back on lending and stricter capital standards are likely, while capital markets will play a larger role in providing financing over the long-term.
Blackrock CEO Warns of Bank Seizures and Shutdowns
The CEO of Blackrock, the world’s largest asset manager, has warned about additional bank seizures and shutdowns that could result from regulatory changes in response to recent major bank failures in the U.S. Larry Fink shared his view on this matter in his annual chairman’s letter to investors this week.
Fink described that Silicon Valley Bank was shut down by regulators last week along with two smaller banks, while Silvergate Bank announced voluntary liquidation and 11 banks bailed out First Republic Bank this week. In Switzerland, Credit Suisse also fell into trouble and received a bailout from the Swiss central bank – all cases being examples of an asset-liability mismatch.
The Blackrock executive noted that so far the regulatory response has been swift and decisive actions have helped stave off contagion risks – however uncertainty remains as to what other consequences may arise from these events.
Impact on Banks & Capital Markets
Fink believes some banks will need to pull back on lending to shore up their balance sheets with stricter capital standards for them likely coming into effect. Over time he anticipates clients awakening to these asset-liability mismatches turning more often towards capital markets for financing instead of relying solely on traditional banking lenders such as those recently affected by these events.
Overall it appears certain further regulation will be required within both banking institutions as well as alternative sources of financing such as capital markets due to current market conditions caused by recent developments within the banking industry worldwide according to Larry Fink, Chairman and CEO of Blackrock Asset Management Company.
• Solana (SOL) and Polygon (MATIC) both rebounded from multi-month lows during Saturday’s session.
• Solana recovered from a two-month low to an intraday peak of $18.85, while MATIC/USD jumped by nearly 7% earlier in the day.
• The global crypto market cap is currently trading 1.8% higher, following a nearly 10% drop on Friday.
Biggest Movers: SOL Rebounds From 2-Month Low to Start the Weekend
Solana rebounded from a two-month low to start the weekend, as bulls reentered the market to buy the recent dip. Overall, the global crypto market cap is currently trading 1.8% higher, following a nearly 10% drop on Friday. Polygon was another notable mover, as price rose by nearly 7% on Saturday.
Solana was back in the green to start the weekend, as bulls reappeared following Friday’s red wave. Following a low of $16.19 in yesterday’s session, SOL/USD moved to an intraday peak of $18.85 on Saturday. The move sees solana climb above a recent floor at $17.30, moving away from its weakest point since January 13 in the process.
Looking at the chart, this was helped by the relative strength index (RSI), which found a point of support at the 30.00 level. As of writing, the index is now tracking at 32.85, which despite the rebound, remains deep in bearish territory. The momentum of the 10-day (red) moving average continues to trend downwards, which could be a sign that there could be more turbulence ahead.
In addition to solana, polygon (MATIC) also rebounded from a multi-month low during Saturday’s session
• In February, the value of digital assets under management (AUM) for digital asset investment products rose to $28.3 billion, the highest number recorded since May 2022.
• Bitcoin and Ethereum continue to account for the lion’s share of all digital assets under management.
• Grayscale remains the most dominant asset management firm with $20.8 billion worth of digital assets under management.
Digital Assets Under Management
The value of digital assets under management (AUM) for digital asset investment products in February rose to $28.3 billion, the highest number recorded since May 2022, according to Cryptocompare stats. Bitcoin and ethereum continue to account for the lion’s share of all digital assets under management at 70.5% and 24% respectively. Grayscale is still the most dominant asset management firm with $20.8 billion worth of AUM.
SEC Enforcement Actions
The increase in investor appetite for digital assets came against the backdrop of a U.S Securities and Exchange Commission (SEC)-led crackdown on industry players and macroeconomic setbacks as well as other factors such as innovation in traditional markets like stocks and bonds that may reduce correlations between investments in these markets and those in cryptocurrencies over time .
Bitcoin & Ethereum AUM Market Share
The assets under management (AUM) for Bitcoin and Ethereum-based products saw an increase of 6.06% and 1.72%, respectively, reaching $20 billion and $6.80 billion according to data from Cryptocompare report . Digital assets that are included in the category of „Other“ and „Basket“ also increased by 14.7% to $1.16 billion and 2