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Bitget Reports a 250% Surge in Assets of Third-Party Custody Accounts, Highlighting Opportunity Pursuit USA – English India – English APAC – English

Bitget Reports a 250% Surge in Assets of Third-Party Custody Accounts, Highlighting Opportunity Pursuit

USA – English

India – English

APAC – English

VICTORIA, Seychelles, Feb. 9, 2024 /PRNewswire/ — Bitget, a leading cryptocurrency exchange and Web3 company, has released a report outlining the usage of custodial wallets among various segments of market participants. The document sheds light on important statistics regarding investor behavior and market dynamics, as well as the general development of the crypto economy.

The study utilized data from Bitget’s third-party custodial accounts, which were launched in August 2023 through collaborations with digital asset custody providers such as Copper and Cobo. The research aims to explore the relationship between various market indicators and the duration of usage of custodial crypto wallets, revealing the following key takeaways:

  • Total assets under custody have surged by 250% in the past four months surrounding the anticipation and subsequent final approval of the BTC ETF.
  • Custodial accounts nearly doubled since November 2023.
  • 43% of custodial account holders with short-term interests use their accounts for repeat deposits;
  • Around 77% of all custodial accounts are used for short-term purposes, highlighting the strategic opportunity pursuit;

A more in-depth look at the research indicates that the increase in custodial accounts is linked to the overall performance of the crypto market and the growing anticipation of a bull run among users. Another important factor influencing the surge is the ongoing integration of cryptocurrencies into everyday life. Macroeconomic and global factors such as local conflicts and mounting geopolitical tensions are also playing an important role in pushing users to seek financial refuge in cryptocurrencies to safeguard their savings.

Institutional adoption is in focus of the research, highlighting rising interest towards Bitcoin and Ethereum ETFs, leading to a spike in investors’ using custodial solutions. Along with the Bitcoin price fluctuations, these factors could be cited as the main reasons for driving the volume of assets under custody by 250% in just four months.

At the same time, market-wide statistics reveal that short-term storage is the main purpose for which users start using custodial wallets. Such users exhibit increased activity levels and typically maintain a balance exceeding $100,000 for less than three months. The predominance of short-term usage over long-term was identified clearly in November of 2023, when trading volumes began to increase sharply across the market, driving more users to open new accounts and capitalize on opportunities.

“Bitget’s latest study highlights a captivating trend within the cryptocurrency space. The indicators Bitget used for conducting the research included both open data, such as crypto market capitalization and custodial wallet account numbers, as well as more specific data, such as institutional investor engagement. The statistics underscore the dynamic nature of the crypto economy and we expect the recent approval of Bitcoin ETFs to accelerate cryptocurrency adoption further. As we continue to witness this growth, Bitget remains committed to providing valuable insights and solutions to our users, helping them navigate the ever-evolving landscape of digital assets,” said Gracy Chen, Managing Director of Bitget.

Bitget consistently publishes comprehensive studies covering a broad spectrum of subjects relevant to its operating markets and the global trends that shape the decentralized economy. These reports serve as invaluable resources for professionals and market participants alike, offering valuable insights into potential shifts in various industries and identifying opportunities for growth and development.

For the full report, please visit: https://www.bitget.com/blog/articles/bitget-reports-a-250-percent-surge-in-custodial-assets

About Bitget

Established in 2018, Bitget is the world’s leading cryptocurrency exchange and web3 company. Serving over 20 million users in 100+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, swap, NFT Marketplace, DApp browser, and more. Bitget inspires individuals to embrace crypto through collaborations with credible partners, including legendary Argentinian footballer Lionel Messi and official eSports events organizer PGL. 

For more information, visit: Website  |  Twitter  |  Telegram  |  LinkedIn  | Discord | Bitget Wallet


Originally published at https://www.prnewswire.com/news-releases/bitget-reports-a-250-surge-in-assets-of-third-party-custody-accounts-highlighting-opportunity-pursuit-302058509.html
Images courtesy of https://pixabay.com

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