April 17, 2019

Crypto trading rates surge as institutional support grows

By Lucy Ingham

Crypto trading rates have shown a marked increase across a number of measures between February and March as interest from institutions continues to grow.

This is according to CryptoCompare’s March 2019 Exchange Review, which is published today.

Most significant is the volume of trading on crypto-to-crypto exchanges, which grew by 70% between February and March.

Bitcoin to US dollar trading volumes played a key role in this, climbing from 70% of all Bitcoin trading in February to 81.7% in March.

Crypto spot market trades – that is, cryptocurrency traded for immediate delivery – also saw significant growth, rising 47.5% from February and totalling $325bn in March.

Rising institutional interest key to increase in crypto trading rates

The increase in crypto trading rates can in part be attributed to growing institutional interest in cryptocurrencies, particularly from the traditional finance industry.

While cryptocurrency was originally seen as a disruptor, and even an adversary of traditional finance – and was often met with scepticism and even derision from key players in that field – it is increasingly being embraced.

This includes a growing number of products available to mainstream investors as well as the diversification of investment approaches by traditional financial institutions.

This involvement has led to predictions of a surge in cryptocurrency over the next 12 months, with Nigel Green, founder and CEO of deVere Group predicting at the start of the year that institutions would drive significant growth of the market in 2019.

“2019 will be a year of accelerated maturation for the crypto sector due to institutional investment,” he said.

With these latest results, in appears Green’s predictions are proving to be correct.

“We continue to see great appetite from both retail and institutional investors to capitalise on the opportunities crypto asset trading can bring,” said Charles Hayter, CEO of CryptoCompare.

“And we have seen crypto markets taking positive steps in two main areas in order to attract institutional investors: the development of a nascent crypto derivatives market, and better trading tools.”

Verdict deals analysis methodology

This analysis considers only announced and completed cross border deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

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