The Resilience of Institutional Investors
Despite the rocky road paved by the FTX debacle, institutional investors are showing a remarkable degree of interest in the digital assets space. In fact, they seem to believe that every cloud has a crypto-lined silver lining.
Bitstamp’s Booming Activity
In what can only be described as a crypto resurrection story, Bitstamp reported a 57% surge in institutional registrations during November—right when news of the FTX collapse was making headlines. Talk about timing!
The exchange also revealed a healthy 45% revenue increase in the same month, thanks to institutions contributing to a 34% boost while retail traders were responsible for a whopping 72% rise. One might say, as FTX faltered, Bitstamp flourished!
Retail Investors Aren’t Holding Back
While traditional finance players were watching the collapse unfold, retail users were busy hitting the buy button. Bitstamp noted a 43% rise in active global retail users in November compared to October, with U.S.-based users climbing by 18%. Seems like the retail crowd decided to ride the crypto rollercoaster despite the loop-de-loops of FTX!
Opportunities in Chaos
According to on-chain analyst Willy Woo, traditional finance capital allocators view the FTX mess as a unique opportunity. In his now-viral tweet, Woo emphasized that while FTX was a glaring example of error, it also solidified the notion that Bitcoin and crypto are here to stay. “It’s now been de-risked,” he argued, implicitly suggesting that only the strong (crypto) survive the storm.
Goldman Sachs’ Crypto Adventures
Jumping into this investment frenzy, financial heavyweight Goldman Sachs is actively looking for ways to enter the crypto market post-FTX. Executive Mathew McDermott mentioned due diligence is underway, eyeing low valuations as prime fishing ground for investments. One wonders if they’re now hiring cryptographers instead of accountants!
The Push for Institutional Adoption
Other players are also keen on lending a helping hand in making digital assets more palatable for institutions. SEBA Bank is collaborating with HashKey Group to accelerate institutional adoption in Hong Kong and Switzerland. Their motto seems to be: “If at first, you don’t succeed, try a partnership!”
Fidelity’s Bright Outlook
A survey from Fidelity Digital Assets revealed that institutions are still accumulating crypto. They noted that 78% of respondents are considering a future entry into the market. Chris Kuiper, head of research at Fidelity, shared his enthusiasm: the crypto wave appears to be just getting started, with institutions surfing right along!
Conclusion: A Silver Lining in the Crypto Storm
While the FTX situation has undoubtedly cast a long shadow over the crypto landscape, it has also illuminated the unwavering interest of institutional investors willing to carve their path in this digital frontier. With retail traders also warming up to the crypto heat, it looks like this industry is set to weather the storm and perhaps emerge even stronger!
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