Bitget Report Announces 250% Surge in Cryptocurrency Custody Assets

By Crypto Gloom On Feb 12, 2024

Bitget recently published a report showing that assets in third-party managed accounts have surged by 250%. The report examines the utilization patterns of custodial wallets across different market segments, providing valuable insights into investor behavior, market dynamics, and overall developments in the cryptocurrency economy.

Bitget Report: Are Crypto Assets Under Management Growing?

This comprehensive study leverages data obtained from Bitget’s third-party custody accounts, which were established in August 2023 through strategic partnerships with digital asset management providers such as Copper and Cobo. This study examines the correlation between various market indicators and custodial cryptocurrency wallet tenure, revealing several key findings:

Total assets under custody have increased significantly by 250% over the past four months, in line with expectations and subsequent approvals of the BTC ETF.
Managed accounts have nearly doubled since November 2023.
43% of short-term storage account holders utilize their accounts for recurring deposits.
Approximately 77% of all managed accounts are used for short-term purposes, highlighting the strategic pursuit of opportunities.

A closer look at the study highlighted that the surge in custodial accounts coincides with the overall performance of the cryptocurrency market and increasing expectations of a bullish trend among users. Factors such as the integration of cryptocurrencies into daily life and global events, including regional conflicts and geopolitical tensions, contribute to users seeking financial refuge in cryptocurrencies to protect their savings.

The study highlights institutional adoption, focusing on the growing interest in Bitcoin and Ethereum ETFs, leading to increased adoption of custody solutions. Bitcoin ETF approval combined with Bitcoin price fluctuations stand out as the main drivers behind the 250% increase in custody assets in just four months.

Market-wide statistics show that the primary purpose for users adopting custodial wallets is short-term storage. Users who engage in short-term usage have increased activity levels, maintaining balances in excess of $100,000 for less than three months. This trend was particularly noticeable in November 2023, which was associated with a sharp increase in trading volume across the market.

“Bitget’s latest research highlights compelling trends within the cryptocurrency space,” Gracy Chen, Managing Director of Bitget, said of the study. She emphasized the dynamic nature of the cryptocurrency economy and expressed hope that the recent approval of the Bitcoin ETF will further accelerate cryptocurrency adoption. Bitget continues to work to provide users with valuable insights and solutions as they navigate the evolving landscape of digital assets.

Bitget continuously publishes comprehensive research covering a variety of topics related to the global trends shaping the operating markets and decentralized economy. The report serves as a valuable resource for professionals and market participants, providing insights into potential industry changes and identifying growth opportunities.

–> Click here to see full report<–

What is Bitget?

About Bitget: Founded in 2018, Bitget is a leading cryptocurrency exchange and Web3 company, serving more than 20 million users in more than 100 countries and regions. Bitget exchange prioritizes helping users trade smarter through innovative features like copy trading. Bitget Wallet, formerly known as BitKeep, is a world-class multi-chain cryptocurrency wallet that offers a comprehensive Web3 solution including wallet features, swaps, NFT marketplace, DApp browser, and more. Bitget works with trusted partners, including legendary Argentine soccer player Lionel Messi and esports event organizer PGL, to encourage individuals to embrace cryptocurrency.

Every serious trader should use Tradingview. Sign up for Tradingview Premium here and get 30$ starting balance directly.