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Institutional companies invested $30 billion in crypto over 5 years
Institutional companies invested $30 billion in crypto over 5 years
24.03.2023
ECONOMY

Global data showed that institutional investors and high-net-worth clients are turning cryptocurrencies into opportunities, seeing their lowest levels in late 2022. In 2022, $10.5 billion was invested by institutional investors in cryptocurrencies and decentralized finance applications.

TURKEY - Cryptocurrencies, which started to draw a pessimistic picture with the global economic winds and saw their lowest levels with the collapse of the world-famous central cryptocurrency exchange, were preferred as an investment tool by institutional investors last year, despite what happened. Data compiled by S&P Global showed that institutional investors, private equity and venture capital firms invested a total of $10.5 billion in cryptocurrencies and decentralized finance applications throughout 2022, despite the so-called crypto winter, which spread almost completely into the second half of the year. Global cryptocurrency exchange Gate.io also announced its spot block transaction service aimed at meeting the needs of institutional investors and high-net-worth clients.

Sharing his evaluations on the subject, Gate.io Founder and General Manager Dr. Lin Han said, “The innovative solution we announced offers top-level security, privacy and efficiency, aligned with the specific needs of organizations and high-net-worth individual investors.”

30 billion dollars investment in 5 years

S&P Global data showed that total investment by institutional investors, private equity firms and venture capital funds in cryptocurrencies and decentralized finance applications reached $30 billion between 2018 and 2022. While 2021 is known to be a peak year with a total investment round of $13.65 billion, investing in crypto remained on the agenda of corporate companies last year, despite the fluctuations.

Emphasizing that the block spot transaction feature they have commissioned is a special solution to protect institutional investors and high-net-worth stockbrokers, Dr Lin Han said, “With this solution, large trades can be executed quickly, without compromising security and privacy. We are determined to develop tailor-made solutions for the changing needs of our different customers.”

Avoids broad market influences

It is known that investments with large amounts of capital are common among high-net-worth individual investors, institutional investors and stockbrokers. Large orders placed on exchanges, combined with the overbought or oversold behaviour of small-scale investors, can often affect the market and cause significant fluctuations in digital asset prices.

Stating that the block spot transaction option they offer helps to reduce these problems that institutional investors frequently encounter, Dr Lin Han said, “In addition to this benefit, institutional investors can benefit from Gate.io's spot blocks transaction solution, such as competitive pricing in multiple cryptocurrencies, high-level liquidity pools, zero fees and zero underperformance, transactions completed in seconds, and high-level privacy. can benefit,” he said.

“We make large-scale trade successful”

Stating that a study conducted at the end of 2022 showed that 62% of institutional investors investing in crypto made purchases despite the crypto winter within 12 months, Gate.io Founder and General Manager Dr Lin Han concluded his evaluations with the following statements: “The Gate.io spot block transaction service we have commissioned offers the tools and flexibility that companies that want to make large-scale trade need to succeed. With this service, large investors who want to invest in crypto can benefit from tailored solutions that meet their needs, strong liquidity and competitive prices.”

Contact: Tülay Genç | [email protected] | +31 30 799 6022

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