Deutsche Bank, Charles Schwab double down on crypto as Bitcoin gains on TradFi

From both short- and long-term perspectives, these two headlines could not have come at a better time.

First, Germany’s largest bank, Deutsche Bank, is preparing to launch crypto custody services. According to Reuters, the bank is just a few weeks away from launching the service in Germany. It will initially support Bitcoin and Ethereum, before moving on to stablecoins and eventually Asian markets in 2027.

That’s not all though as $13 trillion financial giant Charles Schwab has also officially launched Bitcoin and Ethereum trading for eligible clients. In this particular case, about 40 million accounts will be able to access BTC and ETH on the same platform where they trade stocks and bonds.

Collectively, these developments further reinforce the ongoing convergence of TradFi and DeFi, which is ultimately a signal that crypto is on the verge of becoming a mainstream investment category.

On a technical level, however, the institutional adoption comes at a time when Bitcoin is having difficulty holding above the psychologically important $80K-level. Meanwhile, Spot Bitcoin ETFs turned negative on the day as BlackRock alone reported four days of net outflows in the span of just one week, adding pressure to an already uncertain market setup.

Against this background, these developments could help Bitcoin hold key psychological levels in the short term. However, the bigger question is what Deutsche Bank and Charles Schwab have planned next for their crypto push.

According to AMBCrypto, their long-term digital asset strategies could define Bitcoin’s [BTC] institutional momentum in Q4.

Bitcoin vs. TradFi – Is institutional adoption reshaping the market cycle?

Two major TradFi players expanding their crypto services at the same time is hard to overlook.

According to AMBCrypto, the timing is particularly interesting. Despite the recent risk-off sentiment, Bitcoin closed out Q3 strongly on the back of institutional demand. Spot BTC ETFs saw over $6 billion in net inflows, marking the best quarterly performance of the year thus far. In this context, Charles Schwab opening BTC trading to 40 million accounts could further boost institutional and retail access to crypto.

The chart below highlighted another key trend. Despite macro FUD and rate hikes by the Federal Reserve, Bitcoin climbed by over 40% in Q3, compared to only 0.8% of the Nasdaq. This meant that BTC delivered a much better performance than the stock market, making it even more attractive to institutional investors.

In essence, heavyweights are looking to benefit from BTC’s growing outperformance over TradFi markets.

This trend will become more relevant as macroeconomic uncertainty rises in the near term. With U.S mid-term elections approaching, AI boom, and inflation pressures, the performance of BTC against the traditional market indexes can widen even more.

With this in mind, Deutsche Bank and Charles Schwab’s crypto expansion will boost institutional access to BTC. This could contribute to Bitcoin’s Q4 outlook as its outperformance to TradFi continues to gain attention.

Final Summary