Study Shows 250% Increase in Crypto Custodial Assets
A recent study conducted by Bitget has revealed a significant surge in assets under custodial management, indicating a growing opportunity within the cryptocurrency sector. Custodial accounts, which are crucial for ensuring secure storage of digital assets, have experienced notable growth following the final approval of the Bitcoin ETF.
Rapid Growth in Number of Custodial Accounts
The study also discovered that the number of custodial accounts has nearly doubled since November 2023. Of these accounts, approximately 77% are short-term, typically holding funds for less than three months. Interestingly, 43% of short-term account holders choose to redeposit their funds.
Analysis of Bitget’s Custodial Accounts
The research was based on an analysis of data from Bitget’s custodial accounts, which were established in August 2023 through partnerships with custody providers like Copper and Cobo. The objective was to gain insights into market trends and understand how these trends affect the duration of custodial account usage. This analysis is crucial for understanding investor behavior and tracking the evolution of the crypto ecosystem.
Interest from Various Investors and Banks
The crypto custody market, valued at $448 billion in 2022, has attracted significant interest from a diverse range of investors. Major banks such as Commerzbank AG and HSBC have even launched their own digital asset custody services in 2023. This surge in interest can be attributed to traditional market users venturing into crypto and the overall positive market sentiment surrounding Bitcoin and Ether ETFs.
Factors Driving Growth in Custodial Accounts
Despite the inherent volatility of the crypto market, custodial accounts continue to experience growth due to several factors. These include the anticipation of digital asset value growth, the integration of crypto payments into daily life, and global economic uncertainties. The sustained expansion of custodial accounts underscores the increasing mainstream adoption and acceptance of cryptocurrencies.
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