Institutional Investors in Crypto: Who are They and What Assets are They Likely to Buy?
Investors are interested in crypto and major traditional financial organizations began to integrate blockchain into their work. Let’s see who are institutions in crypto, what assets they are focused on, and what services they may receive working with an institutional crypto trading platform.
The year 2022 was quite remarkable for digital assets. Crypto grabbed a lot of attention with news stories, TV discussions, and podcasts focusing on what was happening. On one side, we saw major changes in the companies involved, with some well-known ones facing financial issues. But on the other hand, we also saw some significant things happening.
Investors started to be increasingly interested in crypto and major traditional financial organizations began to integrate blockchain into their work processes. Let’s see who are institutions in crypto, what assets they are focused on, and what services they may receive working with an institutional crypto trading platform.
What Does Institutional Investment Mean?
Institutional crypto investors are serious financial players like big investment companies, banks, and large corporations. They deal with a lot of money and invest it in cryptocurrencies and things related to blockchain technology. Their presence in the market is a sign that cryptocurrencies are becoming more accepted and serious in the financial world.
Big investors require specialized platforms tailored for large amounts of investments and providing a high level of safety for users’ funds. Choosing from all the existing types of cryptocurrency wallet, institutions pick the most reliable offline storage offered by reliable crypto platforms and custody services.
What Assets Do Big Institutional Investors Buy?
Crypto investments often start with buying actual cryptocurrencies, and the most common one’s people invest in are Bitcoin (BTC) and Ethereum (ETH). However, it’s worth mentioning that 60% of big investors who have put their money into these assets are also investing in other cryptos apart from BTC and ETH.
Looking ahead to the year 2025, these big investors plan to put more of their money into different types of investments related to blockchain.
The Services Investors Get When Working with Institutional Investment Platforms
Here are the services big investors get when working with an institutional trading platform:
- Dedicated account managers and personalized support and assistance
- Advanced trading tools, including limit orders, stop-loss orders, and margin trading
- Crypto market maker program – includes continuous buy and sell quotes, narrow spreads, increased liquidity, flexible API, fee incentives or rebates, etc.
- Custody solutions – secure storage of digital assets.
- Regulatory compliance
- Reporting and analytics
- Risk management tools
- Compliance services – KYC and AML checks.
Conclusion
Bitcoin and Ethereum remain the main focus of attention for crypto investors – both retail and institutional. However, the list of promising assets is supposed to expand as more and more traditional companies delve into the crypto sector and find more profit opportunities.
The variety of tools and services offered for big investors makes their work safe and convenient with robust security and personal assistance on crypto investments.