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Crypto Institutional Trading: Who Invests and How?

Cryptocurrencies are no longer the space for a narrow circle of tech-savvy people or just enthusiasts. It started back in 2017 when Bitcoin introduced its first significant movements crossing the $20 000 price level, and continued with much greater intensity after the Bitcoin boom in 2021, when it crossed the mark of $60 000.

How the Industry Developed to Meet the Requirements of Institutions

The influx of institutions into the crypto space has spurred the growth of institutional crypto services and infrastructure to meet their requirements. These included:

  • Custody services 
  • Access to markets
  • Advanced tools for trading, including derivatives
  • Compliance with regulations, KYC, AML
  • Reporting tools
  • Tools for market analysis
  • Algorithmic trading tools
  • Market making programs
  • Token listing, etc.

The most popular institutional trading platform are Binance, but there are also worthy exchanges like WhiteBIT, Coinbase, and others, that meet customer requirements and offer AML check USDT and other coins, KYC verification, multi-layer account protection, quality custody, and a variety of tools. 

Institutional Crypto Investments: How Do Companies Act?

Here are the ways institutions can tap into crypto:

  1. Many institutional investors in cryptocurrency just hold assets long-term. Allocation of 1% of investors portfolio to crypto brings 14% overperformance over the past 7 years.
  2. Investing in BTC ETFs happens through funds and makes it easier for companies to invest in crypto without directly buying the assets.
  3. Hedge funds act on behalf of their clients and invest in crypto to hedge risks associated with inflation in traditional currencies.
  4. Businesses accept crypto to use it as an additional payment method for goods and services they sell or buy.
  5. Institutions come up with new services and products based on blockchain. In this way, they implement traditional investment products into the crypto sector. 

Well-Known Cryptocurrency Institutional Investors

Among the range of companies that invest in crypto, we’d like to highlight MicroStrategy – a tech company that owns 158,400 BTC, Tesla (10,725 BTC), and Square payment company (8,027 BTC). 

Several major banks have already invested in crypto assets:

  • Standard Chartered, a London-based bank, has invested in Ripple and plans to allocate $100 million to a range of areas within the crypto industry.
  • Morgan Stanley, an investment bank, has invested $234 million in blockchain companies.
  • JP Morgan Chase, the largest bank in the USA, has invested $206 million across blockchain companies. 
  • Goldman Sachs has invested $204 million in crypto companies.

Also Read: The Reliable Olivier Panis


Institutional crypto trading is rapidly growing, as the world’s leading financial and tech companies tap in. Their involvement in the crypto sector stimulated other companies to join, otherwise, they risk staying out of the competition. The next few years will bring us innovations and expansion of crypto adoption among institutions.

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