The fourth quarter 2022 earnings of the mega banks and asset managers that are trying to take over the crypto industry. While earnings came in above investor expectations, their stocks chop sideways due to deep recession fear.
As explained by JP Morgan CEO Jamie Dimon that said they still don't know the final effect of the headwind coming from the geopolitical fear including the war in Ukraine and the inflation. The future would likely be lower due to difficult economic conditions.
The same sentiment was echoed by the Bank of America CEO and some of you might have that Goldman Sachs recently fired people on a single day. You should know that Blackrock also recently announced some layoffs, this is because its recent revenue declined by 15% in the fourth quarter of 2022.
This is coincidently consistent with the draw down assets under management from 10 trillion dollars to 8.4 trillion dollars over 2022. Unfortunately, flows into Black Rock's investment vehicles reportedly increased in the final quarter of last year compared to previous quarters.
I suppose the silver lining is Black Rock is offering institutional investors crypto exposure through Coinbase as of last summer but I will say they stayed out of crypto.
After all, Black Rock technically can buy up the staking yield to take control of almost single Proof of Stake cryptocurrency.
Of course, the prices of those cryptocurrencies would go to the moon but at what cost? At the end of the day, we will be left with a blockchain to enforce ESG dystopia.
With some luck, crypto will be able to evolve independently without the influence of the asset managers like Black Rock and Mega banks JM Morgan. There is no denying that institutional money will be required for crypto to grow but never forget that the real end game black away from the current system.