A July 15 analysis from The Block documents that asset managers are overwhelmingly accessing crypto markets through regulated structures: spot ETFs, qualified custodians, tokenized fund wrappers, and equity stakes in blockchain infrastructure firms. Most are acting on behalf of end clients rather than proprietary accounts, meaning their compliance, custody, and reporting requirements are driven by SEC, ERISA, and state fiduciary standards. The trend reflects maturation of institutional crypto allocation from exploratory to structurally embedded.
For Armada's crypto repo desk, asset managers operating through qualified custodians are a natural counterparty fit given the firm's Fireblocks custody infrastructure and no-rehypothecation policy, both of which address the custody risk and segregation concerns that dominate asset manager due diligence. Armada should ensure its counterparty onboarding documentation explicitly addresses qualified custody status, SOC 2 attestation, and rehypothecation prohibition to reduce friction with this segment.