Investors More Sensitive to Risk of Crypto Collapse — Market Talk

Institutional investors are showing heightened sensitivity to counterparty risks in cryptocurrencies that could cause a sharp drop in prices, TP ICAP's digital assets director Hina Joshi says. This follows the collapse of the crypto exchange FTX in 2022 and crypto lender Genesis Global in early 2023, which led to sharp losses in bitcoin and other cryptocurrencies. Investors are seeking "clear asset protection mechanisms" to reduce their exposure to the potential losses stemming from such events, she says. (renae.dyer@wsj.com)