Wall Street banks are expanding crypto sell-side research

Quick Take

  • Wall Street banks have beefing up their crypto research chops.
  • A number of banks — including Jefferies and Credit Suisse — have job ads out for new crypto research roles.

Several traditional banks are looking to fill crypto-related roles within their research divisions — the latest sign that the digital asset ecosystem is becoming fully integrated with the broader market. 

Investment banks have long produced research on digital assets, but such firms are now wanting to pay closer attention, as the number of large publicly traded firms operating in the space grows and crypto markets bleed into traditional finance. At the end of last year, Morgan Stanley announced that Sheena Shah would lead a new team covering the crypto ecosystem, while Bank of America announced its own crypto coverage unit in October. 

Coinbase — the poster child of the US crypto market — has a long list of analysts covering its stock, including researchers from Citi, JPMorgan, Goldman Sachs, and Raymond James. 

In addition to covering the business of crypto firms, analysts also unpack macro topics that may shape the price gyrations of tokens, new technological developments in the blockchain space, and other topics. 

"If you look at the number of corporates mentioning crypto on their earnings calls, that's gone from about 17 last year to about 147 in the most recent quarter," Candace Browning, head of global research at BofA Securities recently told Bloomberg TV. 

The trend has also been fueled by rebrands, such as in the Meta (formerly Facebook) and Block (formerly Square) aimed at highlighting crypto ambitions. As for the metaverse, the niche new crypto buzzword was mentioned by executives of Bumble, Qualcomm, and Tencent during Q3 earnings calls. 

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