In the wake of the recent troubles faced by Silvergate Bank and Silicon Valley Bank (SVB), market analysts are suggesting that Signature Bank (SBNY) may be a good investment opportunity. According to Wells Fargo equity analyst Jared Shaw, SBNY is considered the “last game in crypto-town.”
The news of Silvergate Bank’s liquidation caused SBNY shares to drop more than 13% on Friday, as the trading sessions on Wall Street began. However, analysts from Piper Sandler and Wells Fargo believe that this dip in share price may present a buying opportunity for investors.
The crypto markets have been experiencing a tumultuous week, following the disclosure of Silvergate Bank’s failure on March 8, 2023. The bank, which was known for its friendly stance towards cryptocurrencies, announced that it was winding down its business and liquidating its assets.
SVB has also faced financial difficulties, having been forced to sell a $21 billion bond at a loss of $1.8 billion. SIVB, SVB’s parent company, has seen its share price drop by more than 20% in the past week.
In contrast, SBNY has been performing well in the crypto space. The bank has been expanding its digital asset services and has recently launched a new platform for institutional clients to trade cryptocurrencies.
While the crypto markets may be volatile, analysts believe that SBNY’s strong position in the industry makes it a good investment opportunity. As the “last game in crypto-town,” SBNY may be a safe bet for investors looking to capitalize on the growing popularity of cryptocurrencies.
