The negative effects caused by the FTX debacle have placed the crypto space in an unfavorable light. However, institutional investors continue to show interest in the sector, even during the height of the FTX controversy.
According to crypto exchange Bitstamp, institutional registrations within its digital asset trading platform increased by 57% in November – when the topic of FTX’s collapse was making headlines – compared to October. The exchange also told Cointelegraph that its total revenue increased by 45% during the same period, with revenue from institutions increasing by 34% and that from retail traders by 72%.
The exchange also highlighted that in November, active global retail users also increased by 43% compared to October, with US-based users increasing by 18%. This suggests that even though FTX is a hot topic in the space, more and more crypto investors were actively trading on the exchange.
Also on-chain analyst Willy Woo commented on the question of traditional financial investors eyeing the space. In a tweet, Woo argued that while the FTX collapse appears to have brought the industry back, traditional financial capital allocators view the situation as an opportunity to enter. “They see that Bitcoin and crypto are here to stay and that the risks are now reduced,” he wrote.
On December 6, financial services company Goldman Sachs expressed its intention to purchase or invest in crypto companies. Goldman Sachs executive Mathew McDermott mentioned that the company was already doing due diligence and seeing opportunities while valuations were low. The executive also noted that while FTX has become a leading example within the industry, the technology behind the space continues to work.
Meanwhile, SEBA Bank aims to accelerate institutional adoption through a partnership with HashKey Group. On December 5, the company announced that it would work with HashKey to accelerate the adoption of digital assets within institutions in Hong Kong and Switzerland.
On November 4, a survey published by Fidelity Digital Assets showed why institutions are accumulating cryptocurrencies in 2022. In a previous interview with Cointelegraph, Chris Kuiper, head of research at Fidelity Digital Assets, mentioned that there is an increase in the number of institutions holding cryptocurrencies, while 78% of respondents are considering to enter space in the future.