Cryptocurrency exchange Coinbase has reported a huge surge of interest from pension funds and hedge funds about their digital currency offerings, with new institutional investors adding over $100m worth of assets in the first quarter of 2018 alone.
On October 19, 2018, the popular cryptocurrency exchange Coinbase announced it has seen a surge in institutional interest in the cryptocurrency space. The company reports that interest from institutional investors has increased 170% year over year. Institutional investments come in the form of a variety of funds including hedge funds, mutual funds, structured products, and other types of products.
Coinbase, one of the largest cryptocurrency exchanges in the United States, has announced that they are receiving high volumes of institutional interest from hedge funds and other institutional investors. In a blog post, Coinbase said that institutional investors are increasingly interested in using Coinbase as a means to store and secure their digital assets and trading strategies.. Read more about crypto hedge fund and let us know what you think.Nasdaq-listed cryptocurrency exchange Coinbase has reported record growth in its institutional business. Interest from pension and hedge funds has increased dramatically this year, helped by the introduction of crypto ETPs, as well as a better understanding of the crypto economy, according to Coinbase.
Coinbase sees strong increase in interest from institutional investors
On Tuesday, cryptocurrency exchange Coinbase (Nasdaq: COIN) said its institutional assets increased 170% between December 31 last year and the end of the first quarter of this year, from $45 billion to $122 billion. The company currently has over 8,000 institutional clients, including hedge funds, asset managers, pension funds and endowments. Many institutional customers use Coinbase Custody, a cryptocurrency custody service with institutional customer insurance. The service was launched in 2018 and supports over 90% of cryptocurrencies by market capitalization. Drew Robinson, head of hedge fund sales at Coinbase, said: Over the past 12 months, we have seen increasing interest from institutional investors looking to buy cryptocurrencies. However, interest from pension funds and hedge funds has increased dramatically this year, helped by the introduction of crypto-ETPs and a better understanding of the crypto economy. He was also quoted as saying: Over time, we have found that a number of factors attract institutional investors, including inflation hedging, diversification of corporate balance sheets and a desire to participate more in the digital economy, including in payments, payroll and cross-border payments. Customer demand also plays an important role. Coinbase is not the only company seeing rapid growth in institutional demand for cryptocurrencies. Last month, Goldman Sachs said that the fear of missing out on profits (FOMO) is driving institutional investors to cryptocurrencies. The company has been saying for months that it sees strong institutional demand for bitcoin. What do you think of Coinbase’s 170% increase in institutional assets? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, 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 referred to in this article.It’s been a phenomenal year for Coinbase. We just reported our first venture capital investment in the company. We’ve also been in discussions with a couple of major U.S. pension funds about tokenizing their retirement portfolios. All of this has happened during what has been a very busy year for the company. In the past several months, we’ve also seen an influx of outside money, which has brought our total institutional holdings to over $1 billion.. Read more about is coinbase secure and let us know what you think.
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