{"id":18573,"date":"2023-03-10T20:11:41","date_gmt":"2023-03-10T20:11:41","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/signature-bank-considered-a-buy-as-last-major-bank-standing-in-crypto-market-amid-silvergate-and-svb-troubles-bitcoin-news\/"},"modified":"2023-03-10T20:11:41","modified_gmt":"2023-03-10T20:11:41","slug":"signature-bank-considered-a-buy-as-last-major-bank-standing-in-crypto-market-amid-silvergate-and-svb-troubles-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/signature-bank-considered-a-buy-as-last-major-bank-standing-in-crypto-market-amid-silvergate-and-svb-troubles-bitcoin-news\/","title":{"rendered":"Signature Bank Considered a Buy as Last Major Bank Standing in Crypto Market Amid Silvergate and SVB Troubles \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Amid the demise of Silvergate Bank and the troubles faced by Silicon Valley Bank (SVB), market analysts believe Signature Bank (SBNY) may be a buy as it\u2019s considered the \u201clast game in crypto-town,\u201d according to Wells Fargo equity analyst Jared Shaw. Silvergate\u2019s liquidation caused SBNY shares to sink on Friday, dropping more than 13% as the day\u2019s trading sessions on Wall Street began.<\/strong><\/p>\n

Piper Sandler and Wells Fargo Analysts Suggest Signature Bank May Be a Buy<\/h2>\n

Crypto markets experienced a tumultuous week following the disclosure on March 8, 2023, of Silvergate Bank\u2019s failure<\/a>. The bank, which is friendly towards cryptocurrencies, informed the public<\/a> that it was winding down its business and liquidating its assets.<\/p>\n

Silicon Valley Bank (SVB) has also faced financial difficulties, having been compelled to sell a $21 billion bond at a loss of $1.8 billion. SIVB, SVB\u2019s stock, was halted<\/a> on March 10, 2023, after a decline of more than 60% the previous day. On Friday, regulators shut down Silicon Valley Bank, and the U.S. Federal Deposit Insurance Corporation (FDIC) took over<\/a> as receiver, creating the \u201cDeposit Insurance National Bank of Santa Clara.\u201d The new entity now holds FDIC-insured deposits from SVB.<\/p>\n

On Friday, Signature Bank (Nasdaq: SBNY<\/a>) saw a decrease of over 13% in trading, but by 11:30 p.m. (ET), losses had dropped to 8.55%. Piper Sandler market analysts Mark Fitzgibbon and Gregory Zingone remarked<\/a> on Thursday that \u201cSince Signature Bank\u2019s Signet platform also had numerous cryptocurrency clients, the two banks were frequently mentioned together. Consequently, we are confident that Signature\u2019s stock will continue to be under some pressure in the short term.\u201d<\/p>\n

Additionally, the Piper Sandler analysts observed that Signature\u2019s balance sheet is significantly larger than that of Silvergate and that SBNY has \u201cmany other deposit verticals to depend on.\u201d<\/p>\n

Jared Shaw, an equity analyst at Wells Fargo, wrote<\/a> about Signature Bank and suggested that the stock might be an opportunity. \u201cSignature [is the] last game in crypto-town,\u201d Shaw said. \u201cIt is the only larger bank that still has a functioning on-ramp for institutional cryptocurrency investors. While SBNY has restricted its exposure to this area, this could provide some additional pricing power.\u201d The Wells Fargo analyst added:<\/p>\n

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Additionally, SBNY could use this as a catalyst to move away from in-kind deposits for service to a fee-for-service model, which may be more regulatory and capital friendly.<\/p>\n<\/blockquote>\n

Shaw\u2019s investor memo suggests that SBNY\u2019s strategies may be superior to Silvergate\u2019s, and that providing banking services to cryptocurrency firms was not the primary reason for Silvergate\u2019s financial difficulties. The Wells Fargo<\/a> analyst also stressed, however, that SBNY\u2019s exposure to cryptocurrency assets is more restricted.<\/p>\n

\u201cThe difficulty for SI was being a mono-line provider to cryptocurrency,\u201d Shaw\u2019s investor memo concludes. \u201cAt the end of the year, SBNY limited its exposure to cryptocurrency to 15% of deposits, which should help to decrease liquidity volatility, as we saw in \u201922.\u201d<\/p>\n

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Assets<\/a>, Banking<\/a>, buying opportunity<\/a>, capital<\/a>, Crypto<\/a>, crypto-town<\/a>, Cryptocurrencies<\/a>, deposit<\/a>, equity analyst<\/a>, Finance<\/a>, financial difficulties<\/a>, institutional investors<\/a>, investment<\/a>, Investors<\/a>, Liquidity<\/a>, market analysis<\/a>, Market Trends<\/a>, market volatility<\/a>, mono-line provider<\/a>, on-ramp<\/a>, Piper Sandler<\/a>, pricing power<\/a>, Regulation<\/a>, Signature Bank<\/a>, Silicon Valley Bank<\/a>, Stock<\/a>, Stock Market<\/a>, stock price<\/a>, trading<\/a>, Wall Street<\/a>, Wells Fargo<\/a><\/div>\n<\/div>\n

What do you think about the future of banking in the cryptocurrency industry, and do you believe Signature Bank is well-positioned to take advantage of this emerging market? Share your thoughts in the comments below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, PL Gould \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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