Tue. Aug 20th, 2019

Binance

21st July 2019: In its first-ever poll distributed across large institutional and VIP clients, the Binance’ report titled: “Institutional Market Insights – Q2 2019” has many interesting points:

  • 56% of institutional clients hold cryptocurrencies for the long term;
  • 90% of clients use USD as a benchmark currency;
  • Nearly all clients who responded to the survey use stablecoins;
  • 87% of the respondents have used an OTC desk;
  • 43% of respondents had 3-10 years experience in traditional financial industry and 28% had over 10 years of experience;
  • Clients with large Assets under Management (over USD 25 million) store (at least partially) their digital assets in cold wallets and/or through the use of dedicated third-party custody services;
  • The vast majority of the sampled users rely on exchanges to keep some of their digital asset;
  • Hot wallets (such as mobile applications e.g. Trust Wallet, Coinbase Wallet) are not widely used for storing funds with only a third of the respondents using them;
  • Decentralized exchanges and on-chain protocols are not yet very popular among large market participants;
  • 55% of the respondents responded that they have tried decentralized exchanges but most of the respondents argued that the lack of liquidity, compliance concerns, and non-intuitive user experiences (“lack of familiarity”) were key factors for avoiding decentralized exchanges;
  • Non-custodial cryptoasset borrowing and lending platforms and protocols are even less popular amongst these institutional players;
  • Technology risks remain a concern, particularly the risk of being hacked;
  • Initiatives from private companies such as Facebook, JPMorgan (stablecoins) and Samsung were generally ranked as low potential growth drivers for the cryptoasset industry;
  • Changes in global and local regulations are by far considered the largest single potential growth driver in the future of the cryptoasset industry;
  • The ETF proposal in the US remains a large topic of interest;
  • Any development of auxiliary financial products (ETFs, options, regulated futures and brokerage services) could become significant growth drivers for the industry;
  • More than 80% of the participants expect Bitcoin market capitalization to be between 40% and % at the end of December 2019. It illustrates the special status of Bitcoin as the bellwether of the cryptocurrency and digital asset industry.

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