Introduction
Institutional interest in cryptocurrencies is rising as the industry continues to mature. In response, the established exchange Coinhako has announced the launch of a dedicated service designed to cater to this burgeoning market, including high net worth individuals.
Growth in Institutional Trading Volumes
According to Coinhako, trading volumes among institutional investors have surged on its platform, with the first six months of 2022 witnessing a remarkable 300% increase compared to the same period last year. Notably, despite the volatility shaking both cryptocurrencies and equities, the average trade amounts from institutional clients have increased by 50%.
Introducing Coinhako Treasures
In order to capitalize on this growing interest, Coinhako is launching Coinhako Treasures, a new service that provides a range of structured products and quantitative investment strategies. This initiative aims to empower institutions looking to gain exposure to the crypto market but lacking the knowledge of where to begin.
Regulatory Compliance and Operational Resilience
One of the key hurdles for institutional investors has been regulatory uncertainty. However, Coinhako stands out as one of the select few firms to have received a license from the Monetary Authority of Singapore to offer Digital Payment Token services. Founded in 2014, Coinhako has demonstrated resilience throughout multiple bull and bear markets, gaining valuable experience and insights required to serve larger investors.
Structured Products and Investment Strategies
Coinhako Treasures aims to provide safer avenues for institutional investors by leveraging the higher volatility seen in cryptocurrencies compared to traditional asset classes. Among the structured products in development are principal-protected crypto notes designed to deliver exposure to crypto assets for specified periods. Additionally, dedicated index funds are set to function as one-stop investment vehicles for comprehensive exposure to the vibrant crypto market.
Commitment to Security and Reliability
Yusho Liu, Coinhako’s co-founder and CEO, shared insights on the platform’s institutional services, highlighting the increased interest in this vertical. Liu stated, “We have been using this crypto downtime as an opportunity to build on Coinhako’s institutional services. Our regulatory-compliant processes and ongoing enhancements to our infrastructure have strategically positioned us to advance in the institutional space.” He believes that institutional flows into the market will continue to grow, serving as a crucial driver for future crypto innovation and adoption.