Despite the existing risks, the vast majority of institutional investors store their cryptocurrencies on exchange wallets. This is evidenced by a survey conducted by Binance Research.
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— Binance Research (@BinanceResearch) 22 ноября 2019 г.
“Exchanges remain as the most popular choice for crypto assets storage amongst institutional and VIP clients at 92.1%,” the study said.
The second preferred way to store digital assets among institutional clients is cold wallets (32.9%). Custodial services account for only 2.6%.
At the same time, analysts noted that 92% of respondents do not control their cryptocurrencies themselves, but store them with trusted third parties.
In addition, more than half of customers who store their cryptocurrencies in this way only keep a maximum of 10 BTC ($ 66,900 at the moment).
Among investment strategies, institutional investors most often use high-frequency trading (35.5%), technical analysis (25.0%) and market-making (19.7%).
The most preferred stablecoin for this category of Binance customers is Tether (USDT) – 40% – due to its high liquidity and large market capitalization.
In the second place is the USD Coin (USDC) coin – 19%. The third place is shared by PAX and TUSD stablecoins – 13%
Respondents called the “Change in global & local regulations” of the cryptocurrency industry both as a potential factor for the growth and as a risk. Both tables included digital currencies from Facebook and the People’s Bank of China.
Also, according to institutional figures, various derivative financial instruments based on digital assets and its use by traditional brokerage companies will positively affect the development of the cryptocurrency market.
Speaking about bitcoin, 69% of respondents said that by the end of 2019, the first cryptocurrency will retain significant market dominance, thereby confirming the fear of altcoins.
The survey was conducted among 76 institutional investors using the Binance platform.
Earlier, analysts at Binance Research reported that the “hodling” of bitcoin remains a successful strategy for investors in the first cryptocurrency.