24th October

You can read the last “This week in crypto” here.

UK pension funds are increasingly examining digital assets as part of their diversification strategies. While direct allocations remain modest, a recent survey showed that more UK pension trustees are discussing crypto exposure and seeking regulated access. The shift reflects growing institutional comfort and regulatory momentum in the UK.

The key driver is the potential for enhanced returns in an environment where traditional yields remain low. Some trustees view crypto as a growth asset rather than a core holding, particularly given inflation risks and uncertain bond market performance. The appeal is increasing for pension schemes focused on longer‑term horizons.

However, the move raises important questions around governance, risk and suitability. Pensions face fiduciary duties, so due diligence on crypto custodians, infrastructure, and regulation becomes critical. Firms servicing these schemes must ensure robust security, reporting and compliance frameworks.

For B2B service providers in the pensions and institutional space, this trend means adapting products to meet pension‑specific needs: segregated custody, audit trails, and Lifetime ISAs/ETNs treatment within retirement vehicles. The playground may be small now, but the potential is growing.

Bitcoin has navigated a choppy week, trading around $112,950, with GBP equivalents showing significant movement. While not a fresh all‑time high, the asset is testing resistance levels near its recent peaks. For UK‑based investors, this underscores both opportunity and caution.

Market sentiment remains mixed. On one hand, optimism around regulation, ETF access and macro tailwinds is visible. On the other, macro data - such as US inflation and interest‑rate signals - adds volatility. This is reflected in sharp intraday swings across trading platforms.

Technical analysts point to a breakout possibility if Bitcoin can clear resistance in the coming days. A successful move might open the door to targets around $120,000, but failure to break could bring a retracement toward $105,000–$110,000. Volume and derivatives flows are being watched closely.

The implications are worth noting for retail and pension investors in the UK. Holding periods, risk tolerance and allocation size become more important than ever. Providers offering exposure should ensure clients are aware of the potential for both upside and drawdown.

Stablecoins continue to play a central role in crypto markets for liquidity, trading rails and hedging. Recent data indicate that the supply of major stablecoins is tightening, particularly as demand for on‑chain movement and trading increases. This has implications for price stability and trading behaviour.

For example, traders and institutions increasingly use US‑dollar‑pegged tokens as settlement mechanisms, and the tighter supply may reduce arbitrage efficiency in volatile markets. Managing stablecoin risk and transparency for UK-based platforms becomes more important than ever.

From a B2B perspective, infrastructure providers and custodians must ensure adequate reserves, audit transparency and robust redemption mechanisms. As stablecoin usage grows among pension schemes and institutional clients, the foundations of trust matter tremendously.

In the broader context, tightening supply combined with high demand can create subtle price dynamics in crypto. While stablecoins are designed to be “stable,” participants should remain aware of operational and market risks - not just the underlying asset price.

Recent market‑wide data show a notable uptick in crypto trading volumes across global platforms, with UK‑domiciled activity also rising. According to CoinGecko, total cryptocurrency trading volume surpassed $180 billion in the last 24 hours. This indicates renewed interest from both retail and institutional players.

The return of volume comes with both benefits and caution. Higher volume typically improves liquidity and reduces slippage, enhancing the viability of larger trades or institutional flows. But it also raises the potential for increased volatility and sharper price moves - highlighting the need for sound risk management.

For UK service providers, including brokers and pension platforms, larger volume means greater pressure on infrastructure, security, custody and compliance. Ensuring scalable systems and segregated accounts will help manage risk as activity scales.

Finally, the message is clear for B2C clients: increased volume offers opportunities, but also the likelihood of rapid moves. Education and clear communication around market behaviour, order execution and volatility will be crucial.

This week’s crypto update shows how the market is evolving on multiple fronts: UK pension schemes are tentatively warming to crypto exposure, Bitcoin is testing resistance while volatility remains real, stablecoin supply is tightening, and trading volumes are rising significantly.

For UK B2C, B2B and pension clients, the themes are familiar yet evolving - diversification, infrastructure maturity, regulatory risk and execution clarity. As crypto becomes more integrated into mainstream finance, staying informed and prudent remains key.

At coinpass, we provide a secure and efficient platform designed to meet the needs of professional and corporate investors. Whether you’re looking to diversify your treasury, explore new markets, or integrate digital assets into your financial strategy, our platform offers the necessary tools and expertise.

Book a call with coinpass today.

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