Institutional investors still eye crypto despite the FTX collapse

Please fol­low and like us:
Pin Share

The neg­a­tive effects caused by the FTX deba­cle have put the cryp­to space in an unfa­vor­able light. How­ev­er, insti­tu­tion­al investors con­tin­ued to show inter­est in the indus­try even at the height of the FTX controversy. 

Accord­ing to cryp­to exchange Bit­stamp, com­pared to their data in Octo­ber, insti­tu­tion­al reg­is­tra­tions with­in its dig­i­tal asset trad­ing plat­form is up by 57% in Novem­ber, when the top­ic of the FTX col­lapse fre­quent­ed news head­lines. The exchange also told Coin­tele­graph that its total rev­enue is up by 45% in the same peri­od, with rev­enue com­ing from insti­tu­tions up by 34% and from retail traders up by 72%. 

The exchange also high­light­ed that com­pared to Octo­ber, active glob­al retail users in Novem­ber also increased by 43%, with Unit­ed States-based users up by 18%. This sug­gests that even with FTX being a hot top­ic in the space, more cryp­to investors were active­ly trad­ing with­in the exchange. 

On-chain ana­lyst Willy Woo also com­ment­ed on the issue of tra­di­tion­al finance investors eye­ing the space. In a tweet, Woo argued that while the FTX col­lapse looks like it sets the indus­try back, tra­di­tion­al finance cap­i­tal allo­ca­tors are view­ing the sit­u­a­tion as an oppor­tu­ni­ty to come in. “They see Bit­coin and cryp­to is here to stay and it’s now been de-risked,” he wrote. 

On Dec. 6, finan­cial ser­vices firm Gold­man Sachs expressed its intent to pur­chase or invest in cryp­to com­pa­nies. Gold­man Sachs exec­u­tive Math­ew McDer­mott recent­ly men­tioned that the firm is already doing due dili­gence and is see­ing oppor­tu­ni­ties while val­u­a­tions are low. The exec­u­tive also not­ed that while FTX became a promi­nent exam­ple with­in the indus­try, the under­ly­ing tech­nol­o­gy behind the space still con­tin­ues to perform. 

Relat­ed: Sam Bankman-Fried hires defense attor­ney as US author­i­ties probe FTX: Report

Mean­while, SEBA Bank aims to speed up insti­tu­tion­al adop­tion through a part­ner­ship with HashKey Group. On Dec. 5, the firm announced that it will be work­ing with HashKey to accel­er­ate dig­i­tal asset adop­tion with­in insti­tu­tions in Hong Kong and Switzerland. 

On Nov. 4, a sur­vey released by Fideli­ty Dig­i­tal Assets showed why insti­tu­tions are accu­mu­lat­ing cryp­to in 2022. In a pre­vi­ous Coin­tele­graph inter­view, Chris Kuiper, the Head of Research at Fideli­ty Dig­i­tal Assets, men­tioned that there is an increase in insti­tu­tions hold­ing cryp­to while 78% of respon­dents are plan­ning to enter the space in the future. 



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *