- Bitget’s report reveals a 250% surge in custodial assets, driven by BTC ETF anticipation.
- Institutional adoption fuels growth, with rising interest in Bitcoin and Ethereum ETFs.
- Short-term storage dominates, with 77% of custodial accounts used for short-term purposes.
Bitget, a prominent cryptocurrency exchange and Web3 company, has released a report uncovering a remarkable surge in assets under third-party custodial accounts.
The report reveals a staggering 250% surge in assets under custody within the past four months. This surge is intricately linked to the anticipation and eventual approval of the BTC ETF, signalling a pivotal moment in the cryptocurrency market. The research draws on data from Bitget’s third-party custodial accounts, initiated through collaborations with digital asset custody providers, including Copper and Cobo.
The surge in custodial accounts is not only a testament to the performance of the crypto market but also indicative of the growing integration of cryptocurrencies into everyday life. Macroeconomic factors such as geopolitical tensions and local conflicts are further pushing users towards seeking financial refuge in cryptocurrencies to safeguard their savings.
Institutional adoption, rise in Bitcoin and Ethereum ETFs fuels growth
Bitget’s study places institutional adoption at the forefront, emphasizing a rising interest in Bitcoin and Ethereum ETFs. This institutional involvement has significantly contributed to the spike in custodial assets. As the market experiences fluctuations in Bitcoin prices, coupled with the ongoing integration of cryptocurrencies into various sectors, the adoption of custodial solutions has become increasingly paramount for both individual and institutional investors.
Market-wide statistics indicate a clear preference for short-term storage within custodial wallets. Users, particularly those with short-term interests, exhibit heightened activity levels, with a substantial 77% of all custodial accounts utilized for short-term purposes. The prevalence of short-term usage became evident in November 2023, aligning with a sharp increase in trading volumes and the opening of new accounts to capitalize on emerging opportunities.
The post Bitget reports a 250% surge in custodial assets appeared first on CoinJournal.
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