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Launched in collaboration with digital asset custody providers such as Copper and Cobo in August 2023, <a href="https://financefeeds.com/bitget-implements-mandatory-kyc-and-daily-withdrawal-limit-of-up-to-3-million/" rel="noopener noreferrer nofollow">Bitget's third-party custodial accounts</a> saw a 250% increase in assets over the past four months. This specific period had been marked by the anticipation and subsequent approval of BTC ETFs in the United States.
The research indicates a nearly twofold increase in custodial accounts since November 2023, with 43% of these accounts being used by short-term interest holders for repeated deposits. Additionally, 77% of all custodial accounts are engaged in short-term financial strategies, the study shows.
The surge in the use of custodial accounts is attributed to several factors, including the overall performance of the crypto market, heightened expectations of a bull run, and the integration of cryptocurrencies into daily transactions. Macroeconomic uncertainties and geopolitical tensions have also driven individuals towards cryptocurrencies as a means to protect their finances.
Meanwhile, the research also focuses on the institutional adoption of cryptocurrencies, particularly the rising interest in Bitcoin and Ethereum ETFs, which has led to an increased reliance on custodial solutions. The fluctuations in Bitcoin's price, alongside these ETF interests, are identified as key drivers behind the 250% rise in custody asset volumes within a mere four-month span.
The study further reveals that short-term storage remains the primary reason for users to opt for custodial wallets, with these users showing heightened activity levels and typically maintaining balances over $100,000 for periods shorter than three months. This trend became especially pronounced in November 2023, coinciding with a sharp increase in trading volumes and the opening of new accounts to leverage market opportunities.
Gracy Chen, Managing Director of Bitget, commented on the findings, stating, "Bitget's latest study showcases a fascinating trend in the cryptocurrency sector. The combination of open data and specific metrics, such as institutional investor engagement, underscores the dynamic and evolving nature of the crypto economy. The recent approval of Bitcoin ETFs is expected to further propel cryptocurrency adoption."
Bitget continues to offer deep insights into the digital asset landscape through its continuous <a href="https://financefeeds.com/bitget-research-reveals-84-of-investors-foresee-bitcoin-hitting-record-peaks-70-aim-to-boost-investments-in-2024/" rel="noopener noreferrer nofollow">publication of similar studies</a>. The exchange says these reports help equip professionals and market participants with valuable information on industry shifts, growth opportunities, and the overarching trends shaping the decentralized economy.
Bitget has been scaling its global reach, recently registering as a Virtual Asset Service Provider (VASP) in Poland and securing similar approval in Lithuania. The Singaporean centralized platform, which debuted in 2018, is a diverse crypto exchange that supports spot and futures trading, copy trading, farming and staking services.
<a href="https://financefeeds.com/bitget-launches-commission-free-spot-trading/" rel="noopener noreferrer nofollow">Bitget</a>&nbsp;also acts as Juventus official partner and official cryptocurrency exchange partner, and its first-ever sleeve partner. The cryptocurrency derivatives exchange reportedly has 1.6 million registered users in 48 countries and regions including UK, France, Italy, South Korea, Japan, and Russia.

Bitget observes 250% growth in custodial assets amid market opportunities

FinanceFeeds

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