Wintermute discusses employee attrition to TradFi Now the crypto industry also has advocates in the mainstream financial world

Wintermute discusses employee attrition in TradFi, while the crypto industry gains advocates in mainstream finance.

The downside is that we lose some talent here and there, but the upside is that we now have supporters in the traditional finance sector.

Written by: Trista Kelley, Adam Morgan McCarthy, DLNews

Translated by: Lvdong Xiaogong, BlockBeats

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Major financial institutions such as BlackRock and Fidelity are ramping up efforts to expand the coverage of their cryptocurrency product offerings and attract more consumers. This means they need to hire more employees with cryptocurrency experience to achieve this goal.

Yoann Turpin, co-founder of digital asset trading company Wintermute, said that they have seen employees leaving to join banks and hedge funds and other non-cryptocurrency companies. “We see truly talented individuals returning to TradFi,” Turpin said, using the abbreviation for “Traditional Finance” here.

He said this is one of the “unforeseen impacts” brought about by the entry of large institutions into the cryptocurrency field.

“The number of applications for spot Bitcoin and Ethereum exchange-traded funds (ETFs) has surged, indicating that the industry has gained ‘more third-party validation,'” Turpin said at the CCDataCCDAS conference held in London last week.

“This is both good and bad,” he said about job changes. “The downside is that we lose some talent here and there, but the upside is that we now have supporters in the traditional finance sector who are familiar with our company culture and can help familiarize banks with cryptocurrencies.”

During the pandemic, the soaring prices of cryptocurrencies attracted many bankers to flock to the industry. Even after the cryptocurrency crash last year, many people still stayed in their positions. But this trend may be changing.

Recent departures include Danielle Johnson, a managing director at Goldman Sachs for many years, who left the company last summer after a year at Galaxy Digital. Shortly after Johnson’s departure, Tim Grant, Galaxy’s head of Europe, also left the company during a restructuring. Grant subsequently set up a family office called Deus X Capital, investing in institutional capital markets, fintech, and digital assets.

In January of this year, Galaxy also lost Chris Berner, co-global head of electronic crypto trading. Berner previously served as head of electronic foreign exchange trading at Bank of America. After leaving Galaxy, he joined Fidelity as co-global head of electronic foreign exchange trading.

Talent from bankrupt cryptocurrency companies has also found new homes in traditional finance. Rachel Willis, former communications manager at BlockFi, joined BNY Mellon’s digital asset team in April as chief of staff.

Earlier this year, BNY Mellon appointed former Zodia Custody CEO Maxime de Guillebon as its head of digital asset products. De Guillebon was succeeded by former Bitstamp CEO Julian Sawyer, who has extensive experience at companies such as Accenture and Starling Bank. Other individuals also made moves in 2022, such as Carolyn Vadino, communications director at Gemini, who joined BlackRock last summer.

These measures were taken in the midst of institutions pouring into cryptocurrencies.

A report from the Greenwich Alliance last month found that banks, hedge funds, asset management companies, and other financial firms are increasingly hiring experienced professionals for their cryptocurrency departments. Nearly a quarter (24%) of companies stated that they hold senior positions specifically responsible for digital assets.

Significant institutional initiatives are helping the overall sentiment of the cryptocurrency industry. Market analysts believe that cryptocurrencies have become a new battlefield for young, tech-savvy investors. Marketing and image are key. Turpin, who has traded for financial firms including market maker Optiver, responded to this idea. He believes that the push for ETFs may have a smaller impact on generating new funds entering this field, but in terms of brand promotion and understanding new capital inflows, it could be a more effective battle.

The improvement in sentiment benefits not only investors. “Everyone needs a bit of reassurance, especially when you come from traditional finance and truly enter the world of cryptocurrencies,” Turpin said.

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