According to Bitget’s recent report, there has been a significant increase of over 250% in assets held in third-party custodial accounts. This surge is largely attributed to the anticipation and eventual approval of the BTC ETF, which is a significant milestone for the cryptocurrency market. The data used in the report was collected from Bitget’s partnerships with leading digital asset custody providers, such as Copper and Cobo.
The rise in custodial assets not only demonstrates the strong performance of the crypto market, but also reflects the growing integration of cryptocurrencies into everyday life. With geopolitical tensions and local conflicts driving individuals to seek financial refuge in cryptocurrencies, it is clear that these digital assets are becoming more mainstream and widely accepted.
Institutional adoption has been a major contributing factor to the increase in custodial assets, with a growing interest in Bitcoin and Ethereum ETFs. As these institutional investors enter the market, there has been a significant rise in assets held in custodial wallets. This trend is expected to continue as cryptocurrencies become more widely accepted and integrated into various industries.
The majority of custodial accounts are being used for short-term purposes, with 77% of all accounts falling into this category. This is largely due to the volatile nature of the crypto market, as well as the opportunities for short-term gains. This trend became evident in November 2023, coinciding with a sharp increase in trading volumes and the opening of new accounts.
Lastly, Bitget’s report also highlights the growing interest in cryptocurrencies, as evidenced by the increasing number of shares and use of categories and tags related to these digital assets. This indicates a growing awareness and acceptance of cryptocurrencies, further solidifying their place in the financial world.