The Nasdaq-listed cryptocurrency exchange Coinbase has revealed record growth in its institutional business. “This year, interest from pension funds and hedge funds has skyrocketed, supported by the roll-out of crypto-ETPs as well as an increased understanding of the crypto economy,” said Coinbase.
Coinbase Sees Interest From Institutional Investors Skyrocketing
Cryptocurrency exchange Coinbase (Nasdaq: COIN) reportedly revealed Tuesday that between Dec. 31 last year and the end of the first quarter this year, its institutional holdings grew 170% from $45 billion to $122 billion.
The company has over 8,000 institutional clients currently, including hedge funds, asset managers, pension funds, and endowments. Many institutional clients use Coinbase Custody, a crypto custody service with an insurance policy for institutional clients. The service, launched in 2018, supports over 90% of cryptocurrencies by market capitalization.
Drew Robinson, Head of Hedge Fund Sales at Coinbase, says:
Over the last 12 months, we have seen a growing interest from institutional investors seeking to take advantage of the crypto space. However, this year, interest from pension funds and hedge funds has skyrocketed, supported by the roll-out of crypto-ETPs as well as an increased understanding of the crypto economy.
He was further quoted as saying: “Over time we have seen a variety of factors pulling institutional investors into the space; these range from hedging against inflation, diversification of corporate balance sheets and the desire for broader engagement in the digital economy, including areas such as payments, payroll and cross border payments. Client demand is also playing a significant role.”
Coinbase is not the only company seeing soaring institutional demand for cryptocurrency. Goldman Sachs said last month that fear of missing out (FOMO) has driven institutional investors to cryptocurrency. The firm has been saying for months that it is seeing huge institutional demand for bitcoin.
What do you think about Coinbase’s institutional holdings growing 170%? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: 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 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.
Credit: Source link
