The price of Bitcoin, the world’s largest cryptocurrency, has surged over the past few weeks, and thanks to the same, more and more entities and businesses are interested in wading into the crypto-market. As a result, more and more institutions are actively investing in Bitcoin and buying up positions. However, that’s not all, as there are other ways by which many businesses are trying to turn the prevailing trends in the crypto-market in their favor.
Norwegian Block Exchange [NBX], a cryptocurrency exchange launched in April 2020, is one such business. Since its launch, the exchange has garnered 7000 clients, including many institutional accounts. Given the growing institutional interest in the Bitcoin market, the trading volume on the exchange was driven to 20 million NOK by November 2020.
NBX is in the news again after it announced the completion of NOK 60 million in private placements. According to a press release received by AMBCrypto, this investment will provide NBX with additional financial robustness to pursue a banking license and become one of Europe’s first digital asset banks, as per its co-founder and CEO Stig Aleksander Kjos-Mathisen.
The CEO added,
“I am very pleased that NBX has successfully raised 60 million NOK in a private placement. This funding will provide NBX with the financial robustness to pursue a banking license, and become one of Europe’s first digital assets banks, while simultaneously expanding our services to new countries and establishing NBX as the preferred digital asset service provider in the Nordics.”
The idea of becoming one of Europe’s first digital assets banks comes at an opportune time, given Bitcoin’s rally. The institutional interest NBX received between April and November was due to a rise in institutional demand in the Bitcoin market. With the cryptocurrency well on its way in 2021, the global market is looking at Bitcoin’s performance in terms of gold and the extended traditional market.
According to NBX’s prediction for Bitcoin in 2021, if the digital asset manages to sustain at least 1/2 of this year’s ROI, then the idea that it’s becoming the world’s greatest hedge will gain more prominence through it continuing in its current positive feedback loop. As the exchange works towards cementing its relationship with institutional clients, Bitcoin’s performance as an asset, especially when compared to Gold, will be key.