The negative effects caused by the FTX debacle have cast the crypto space in an unfavorable light. However, institutional investors continued to show interest in the sector even at the height of the FTX controversy.
According to cryptocurrency exchange Bitstamp, compared to its October data, institutional registrations within its digital asset trading platform rose 57% in November, when the topic of the FTX collapse was frequenting the news headlines. The exchange also told Cointelegraph that its total revenue increased 45% in the same period, with revenue from institutions up 34% and revenue from retail traders up 72%.
The exchange also highlighted that compared to October, active global retail users in November were also up 43%, with US-based users up 18%. This suggests that even with FTX being a hot topic in the space, more cryptocurrency investors were actively trading on the exchange.
On-chain analyst Willy Woo also commented the issue of traditional financial investors fixing on space. In a tweet, Woo argued that while the FTX collapse appears to be setting the sector back, traditional finance capital allocators are seeing the situation as an opportunity to get in. “They see that Bitcoin and cryptocurrencies are here to stay and the risk has now been removed,” he wrote.
On December 6, the financial services company Goldman Sachs expressed its intention to buy or invest in cryptocurrency companies. Goldman Sachs executive Matthew McDermott, recently mentioned that the firm is already doing due diligence and seeing opportunities while valuations are low. The executive also noted that while FTX became a prominent example within the industry, the underlying technology behind the space still continues to perform.
In the meantime, SEBA Bank intends to accelerate institutional adoption through a partnership with HashKey Group. On December 5, the entity announced that it will collaborate with HashKey to accelerate the adoption of digital assets in institutions in Hong Kong and Switzerland.
On November 4, A survey published by Fidelity Digital Assets showed why institutions are hoarding cryptocurrencies in 2022. In a previous Cointelegraph interview, Chris Kuiper, Head of Research at Fidelity Digital Assets, mentioned that there is an increase in institutions holding crypto, with 78% of respondents planning to enter the space in the future.
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