The FTX fiasco’s undesirable impacts have damaged the reputation of the crypto industry. Even at the height of the FTX crisis, institutional investors remained interested in the sector, though.
In November, when the FTX collapse was a hot issue in the news, institutional registrations on Bitstamp’s digital asset trading platform increased by 57% in comparison to statistics from October.
The exchange also informed a news outlet that within the same time period, its total revenue increased by 45%, with revenue from institutions increasing by 34% and revenue from retail traders increasing by 72%.
The exchange also noted that, compared to October, the number of active international retail users rose by 43% in November, with users in the United States increasing by 18%.
This shows that more cryptocurrency investors were actively trading within the exchange, even if FTX was a major subject in the industry.
Willy Woo, an on-chain analyst, added his thoughts on the matter of traditional finance investors looking into the area.
Woo noted in a tweet that while the FTX crash appears to be a setback for the industry, traditional finance capital allocators are seeing the chance as an entry point.
He wrote: “They understand that Bitcoin and cryptocurrency are here to stay and have been de-risked.”
Financial services company Goldman Sachs announced its intention to buy or invest in cryptocurrency firms on December 6. Mathew McDermott, a Goldman Sachs executive, has stated that the company is already conducting due diligence and is spotting chances while valuations remain low.
The CEO added that although FTX rose to prominence in the sector, the underlying technology in the area is still functional.
In the meanwhile, SEBA Bank hopes that collaboration with HashKey Group will hasten institutional adoption.
The company revealed on December 5 that it will collaborate with HashKey to hasten the adoption of digital assets in Swiss and Hong Kong institutions.
In a survey published on November 4 by Fidelity Digital Assets, it was revealed why institutions are stockpiling cryptocurrencies in 2022.
Chris Kuiper, the head of research at Fidelity Digital Assets, stated that 78% of respondents are going to enter the market in the future during a previous press interview. He also noted that there is an increase in institutions holding cryptocurrency.
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