- Bitget has released a new report detailing the utilization of storage wallets among different segments of market participants.
- According to the report, the number of custodial accounts on the platform has nearly doubled in the span of four months.
- Total assets under management (AUM) have grown by 250%.
- Experts attribute this growth to the approval of spot Bitcoin ETFs, as well as macroeconomic factors.
Bitget, a crypto exchange, has published a report that delves into the usage of wallets for storing digital assets across various categories of market participants. The report provides insights into investor behavior, market dynamics, and the overall development of the cryptocurrency economy.
In conducting the study, Bitget’s experts utilized data from third-party custodial accounts on the platform. These custodial accounts were launched in August 2023 through collaborations with two service providers – Copper and Cobo.
The goal of the study was to examine the relationship between different market indicators and the duration of custodial account usage. Based on their findings, Bitget’s experts arrived at several conclusions:
- The platform has experienced a 250% growth in assets under management (AUM) since November 2023, driven by the anticipation and subsequent approval of spot Bitcoin ETFs.
- The number of custodial accounts has nearly doubled.
- 43% of the owners of addresses where funds are stored for less than three months use them for repeated deposits.
- About 77% of all custodial accounts are primarily used for short-term purposes.
The analysis reveals that the increase in the number of custodial accounts can be linked to the overall performance of the cryptocurrency market and users’ growing expectations of bullish growth, stated Bitget. Additionally, experts pointed out that the continued integration of cryptocurrencies into everyday life and macroeconomic factors are significant drivers, as users seek financial refuge in digital assets to safeguard their savings.
Institutional adoption takes center stage in the report, which highlights the increasing interest in Bitcoin and Ethereum-based spot ETFs. This interest has led to more investors utilizing custody solutions. Together with price fluctuations in the leading cryptocurrency, these factors are identified as the main drivers behind the 250% growth in asset under management over four months, according to Bitget.
Furthermore, market statistics demonstrate that users primarily begin utilizing custodial wallets for short-term storage purposes. They exhibit heightened levels of activity and typically maintain a balance exceeding $100,000 over a three-month period.
The prevalence of short-term use over long-term use became evident in November 2023 when trading volumes surged across the market, prompting more users to open new accounts and capitalize on emerging opportunities.
“Bitget’s latest research highlights an exciting trend in the cryptocurrency space. The metrics utilized for this study encompass both public data, such as crypto market capitalization and account numbers, and more specific data, such as institutional investor participation. These statistics underscore the dynamic nature of the cryptocurrency economy, and we anticipate that the recent approval of spot Bitcoin ETFs will further accelerate cryptocurrency adoption,” stated Gracie Chen, the exchange’s managing director.
Bitget consistently publishes comprehensive research covering a wide range of topics related to its operational markets and global trends impacting the decentralized economy.
The full report can be accessed on Bitget’s website.