Institutional interest in cryptocurrencies is rising as the industry continues to mature.
And now, a long-established exchange has announced that it's launching a dedicated service to cater to this growing market — as well as high net worth individuals.
Coinhako says trading volumes among institutional investors have surged on its platform — and in the first six months of 2022, they were 300% higher than the same period last year.
Despite the volatility that has engulfed cryptocurrencies and equities alike over the summer, the company has also seen a 50% increase in average trade amounts from institutional investors.
Coinhako Treasures will aim to deliver a variety of structured products and quantitative investment strategies — empowering institutions who want to gain exposure to crypto but don't know where to start.
Regulatory uncertainty has been a big hurdle for deep-pocketed individuals and organizations. But Coinhako is among a small number of firms to receive a license from the Monetary Authority of Singapore to offer Digital Payment Token services.
The company launched in 2014 — and has shown resilience through a number of bull and bear markets. Executives say the firm's longevity has unlocked the valuable experience and data required to cater to bigger investors.
What's on offer
According to Coinhako, its structured products aim to offer safer avenues for institutional investors by capitalizing on the volatility of cryptocurrencies, which is higher when compared with more traditional asset classes.
Other strategies in the pipeline include principal protected crypto notes, which would deliver exposure to cryptoassets for a stipulated period of time. Meanwhile, dedicated index funds are set to serve as one-stop investment vehicles for broad exposure to this vibrant market.
Coinhako's co-founder and CEO, Yusho Liu, told Cointelegraph: "We have been using this crypto downtime as an opportunity to build on Coinhako's institutional services.
"We are seeing increased interest in this vertical and we are well positioned to provide quality service alongside sophisticated offerings. Our regulatory-compliant processes and continual bolstering of our existing infrastructure have been strategic in our advancements in the institutional space."
According to Yusho, a key goal is to give institutional investors assurance and compliance in the world of crypto — and this is why the company is committed to security and reliability.
"We believe institutional flows into the market will continue to grow and serve as a crucial driver for future crypto innovation and adoption," he predicted.
Crunching the numbers
Across the whole of 2021 — including Bitcoin's dramatic rally to new highs of $68,700 — Coinhako saw trading volumes hit approximately $5.1 billion. To put that into context, that's a 1,200% jump from the year before.
This was matched by a substantial surge in the number of registered users on the exchange, which doubled year on year to 380,000.
Coinhako's primary market is retail users — and the trading platform says it will continue to optimize products and services for these customers in the coming 12 months.
For years, long-standing crypto exchanges have argued that bear markets are for building — and preparing to welcome hordes of users in the next bull run. Coinhako is doing exactly that, and confidently believes that institutional investors and high net worth individuals are going to play a pivotal role in crypto adoption as the 2020s progress.
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