Limited access to banking services has been probably the greatest challenge for cryptocurrency hedge funds these past few years.
This issue highlights growing tension between traditional financial institutions and the digital asset industry.
A recent survey reveals that three-quarters of crypto-focused hedge funds have faced difficulties maintaining banking relationships. Common problems include sudden account closures and vague justifications tied to the perceived volatility of the cryptocurrency market.
By contrast, funds in sectors like real estate and private credit reported no such issues, underscoring a glaring disparity.
Leaders in the crypto space are voicing concerns about potential discrimination. Coinbase’s Chief Legal Officer, Paul Grewal, questioned why crypto funds face these challenges while other industries do not. Bitwise’s Matt Hougan described the situation as a long-standing issue that was often ignored or dismissed by outsiders, leaving crypto firms feeling marginalized.
With Donald Trump’s incoming administration signaling a more supportive stance toward cryptocurrencies, there is renewed hope for change. David Sacks, recently appointed as the administration’s AI and Crypto Czar, has emphasized the need to address these restrictive banking practices and their impact on the sector. Many in the industry see this as a crucial step toward fairer treatment for crypto-related businesses.
The first week of July brings several important developments in the United States that could influence both traditional markets and the cryptocurrency sector.
Ric Edelman, one of the most influential voices in personal finance, has radically revised his stance on crypto allocation. After years of cautious optimism, he now believes that digital assets deserve a far larger share in investment portfolios than ever before.
In the case involving Terraform Labs and its co-founder Do Hyeong Kwon, the defense has asked the Federal Court for the Southern District of New York to extend the deadline for pretrial filings by two weeks, pushing it beyond the original date of July 1, 2025.
Coinbase has emerged as the best-performing stock in the S&P 500 for June, climbing 43% amid a surge of bullish momentum driven by regulatory clarity, product innovation, and deeper institutional interest in crypto.