Coinbase CEO, Brian Armstrong, has revealed that institutional investment accounts for 60% of trading on its professional trading platform, Coinbase Pro. Armstrong was speaking to Fred Wilson, Coinbase investors and co-founder of Union Square Ventures at the Blockchain Week NYC.
Armstrong spoke of the growth in institutional investment,
As we’ve gotten going, institutions have become a bigger and bigger part of our business. We’ve started adding features like OTC trading through Coinbase custody where these large block trades are starting to happen. And institutions have become I think 60% of our trading volumes on Coinbase Pro as well. So these are key customer segments for us and we’re just going to keep investing more and more in it.
Several reports have been published regarding the growth of institutional interest in cryptocurrencies. Big Four firm PwC has predicted a surge in institutional investment in 2019, while multinational investment bank Morgan Stanley has reported that crypto is a “new asset class.”
Major institutional investment services are also expected to launch later this year, including Bakkt and Fidelity Digital Assets. Both are squarely aimed at institutional investors, with an eToro analyst saying that the latter could add $2000 to Bitcoin’s (BTC) price.