The study utilized data from third-party custodial accounts on Bitget, which was launched in August 2023 through a collaboration with digital asset custody providers Copper and Cobo. The aim of the study was to examine the relationship between various market indicators and the duration of crypto wallet usage, leading to the following key findings:
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There has been a remarkable 250% increase in total assets under management in the past four months, driven by the anticipation and subsequent approval of a Bitcoin ETF.
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Depository account volume has nearly doubled since November 2023.
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43% of custodial account holders with short-term interests utilize their accounts for recurring deposits.
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Approximately 77% of all custodial accounts are used for short-term purposes, highlighting their strategic importance.
A thorough analysis of the study reveals that the surge in custodial accounts is linked to the overall performance of the crypto market and the growing expectation of bullish growth among users. Another factor influencing this growth is the incorporation of cryptocurrencies into everyday life. Additionally, macroeconomic and global factors, such as local conflicts and rising geopolitical tensions, are playing a significant role in driving users to seek financial refuge in cryptocurrencies to safeguard their savings.
Institutional adoption is a key focus of the study, highlighting the mounting interest in Bitcoin and Ethereum ETFs, which has resulted in an increased number of investors utilizing custody solutions. Combined with Bitcoin price fluctuations, these factors can be attributed as the primary drivers behind the 250% surge in assets under management in just four months.
Simultaneously, market statistics indicate that short-term storage is the primary purpose for which users begin to utilize custodial wallets. Such users demonstrate heightened activity levels and typically hold balances exceeding $100,000 for less than three months. The dominance of short-term usage over long-term usage became evident in November 2023, when trading volumes spiked 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 Bitget used to conduct the study included both public data, such as cryptocurrency market capitalization and wallet account numbers, and more specific data, such as institutional investor participation. These statistics highlight the dynamic nature of the crypto economy, and we expect the recent approval of a Bitcoin ETF to further accelerate the adoption of cryptocurrencies. As we continue to witness this growth, Bitget remains committed to providing valuable insights and solutions to our users, helping them navigate the ever-changing digital asset landscape,” said Bitget Managing Director Gracie Chen.
Previously, Bitget experts analyzed the funding of blockchain startups over the past two years and also reported a 94% increase in spot trading and a 110% increase in BGB trading on the platform.