Data from crypto exchange Bitstamp shows that institutional registrations on the trading platform increased by 57% in November.
The FTX fiasco had a negative impact and damaged the reputation of the crypto industry. Even at the height of the FTX issue, institutional investors are still showing interest in the sector.
In November, when the FTX collapse was a hot topic in the news, institutional registrations on cryptocurrency exchange Bitstamp’s digital asset trading platform were up 57% from October.
The exchange also stated 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 active retail users worldwide increased by 43% in November compared to October, with users in the United States increasing by 18%. This shows that more cryptocurrency investors were actively trading on the exchange even though 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 asserted in a tweet that traditional finance capital allocators are looking at the FTX collapse as an opportunity to enter the market even though it appears to have brought the industry back.
He wrote, “They see that Bitcoin and crypto is here to stay and its now been de-risked”. Financial services company Goldman Sachs announced its intention to buy or invest in cryptocurrency firms on December 6.
According to Goldman Sachs executive Mathew McDermott, the company is already conducting due diligence and looking for opportunities when prices are 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 a 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 in a previous interview that more institutions are holding cryptocurrencies, and 78% of respondents intend to do so in the future
