KEY POINTS
- Institutional investor activity reached 15.6 million transactions worth $207 billion on Fireblocks
- Fireblocks said the surge highlights there is 'rapidly-building momentum' among institutional investors in crypto
- The network's total amount of assets held has grown from $13.4 billion in July 2022 to $60 billion
The lines that once blurred the traditional and digital economy are coming into view, as decentralized platforms enable a host of transactions and activities that once were impossible, and the revolution is now being centered on institutional investors.
New data from cryptocurrency infrastructure provider Fireblocks Network showed that activity among institutional investors has been surging over the past year, signaling a new era of finance.
Institutional Investors Log Over 15M Transactions in a Month
Institutional investors' activity around digital assets surged this year, particularly in July, when their transactions executed on the Fireblocks Network grew by 85% compared to the same month last year.
In total, institutional investors' activity on Fireblocks reached 15.6 million, with the said transactions hitting a collective value of $207 billion.
"The surge underscores the rapidly-building momentum from traditional financial institutions for digital assets, spurred on by a tripling of tokenization efforts," the Fireblocks team said in a press release shared with International Business Times.
The latest data from Fireblocks matches research by crypto exchange OKX, which showed that around 51% of institutional investors were considering spot crypto allocations and 69% anticipated an increase in their crypto allocations and related products in the next few years.
Fact: 1 in 4 Fireblocks customers are startups and SMBs. 💡
— Fireblocks (@FireblocksHQ) August 8, 2024
Our understanding of the unique needs of emerging businesses prompted us to design Fireblocks for Startups, a suite of self-service tools offering the speed, security, and simplicity essential for success.
Read on →… pic.twitter.com/YI7WzhMBgd
Fireblocks Network Assets Held Balloons
Along with the growth of institutional investor activity on the network is the significant increase in the total amount of assets held on Fireblocks. The figures, which stood at $13.4 billion in July 2022, has now reached $60 billion.
Furthermore, network-verified addresses spiked to 495,000 at a time when the volume of total transactions on the network reached $6 trillion, marking a stellar increase two years from the shocking collapse of crypto darling FTX, which saw the prices of crypto and activity in the space significantly decrease in the aftermath of the exchange's fall.
Fireblocks saw a 10% increase in the number of countries it operates in, which now stands at 109. Its institutional client base is now at 2,000, and it has facilitated over $6 trillion in transactions across over 200 million wallets. It caters to many traditional banks and other financial platforms, including Revolut, BNY Mellon, and BNP Paribas among others.
The Entry of Institutions in Crypto
Fireblocks' latest data comes as traditional firms and banks continue to jump into the burgeoning crypto space. The rise of institutional investors in the sector was largely propelled by the launch of spot crypto exchange-traded funds (ETFs), in particular spot BTC ETFs.
Bitcoin ETFs are now among the world's largest corporate holders of BTC, and in the lead is investment titan BlackRock, whose IBIT reigns above all.
Outside the spot Bitcoin ETF circle, institutional investors are also exploring platforms that bridge the gap between traditional and digital asset markets. Fireblocks is at center of the shift, as it enables fast and secure transactions for investors seeking a security-first model.
