Crypto continues to attract institutional investors

07 Dec 2022

Institutional investors are continuing to pile into cryptocurrencies, despite the recent FTX collapse, according to findings by Bitstamp.

Compared to their October data, crypto exchange Bitstamp reported a 57% rise in institutional registrations within its digital asset trading platform last month. 

In addition, reports Cointelegraph, Bitstamp said its total revenue has risen by 45% within the same period, with revenue stemming from institutions up 34% and from retail traders up 72%.

Furthermore, when compared to October, active global retail users also rose last month by 43%, with U.S-based users increasing by 18%, indicating a greater number of crypto investors, despite the FTX fiasco.

According to on-chain analyst Willy Woo, traditional finance investors regard the situation as an opportunity: “They see Bitcoin and crypto is here to stay, and it’s now been de-risked,” he said on Twitter.

On Tuesday, Goldman Sachs revealed its intent to purchase or invest in cryptocurrency firms, and according to executive Mathew McDermott, the company is already carrying out due diligence and finding opportunities while valuations are low, says a Cointelegraph report.#

Additionally, SEBA Bank is planning to accelerate crypto adoption via a collaboration with HashKey Group. Earlier this week, the company announced it would work alongside HashKey to speed up digital asset adoption within Hong Kong and Switzerland institutions.

Last month, a survey published by Fidelity Digital Assets revealed reasons why institutions have been piling into crypto this year. Head of Research at Fidelity Digital Assets, Chris Kuiper, said there is a rise in the number of institutions holding crypto, and 78% of those polled are planning to enter the crypto space in future.

These latest findings were echoed by deVere CEO and founder Nigel Green recently, who commented: “The ongoing institutional investment support being shown to Bitcoin and cryptocurrencies demonstrates that they are unstoppable.

“They continue to pile into the space despite industry-rocking collapses of some firms and attempts by some governments and central banks to bring crypto down.”