A Global Digital Finance (GDF) study reveals a surge in institutional engagement with Bitcoin and digital assets, with 93% of financial institutions involved in some capacity. The research highlights the growing adoption of Bitcoin for custody, trading, and ETFs, alongside increasing interest in Ethereum, DeFi protocols, and NFTs.
The latest research from Global Digital Finance (GDF) has highlighted a significant shift in the financial sector, with institutional investors increasingly incorporating Bitcoin and other digital assets into their portfolios. This comprehensive study, which spans major financial hubs across the US, Asia, Europe, and the Middle East, reveals that nearly all respondents are now engaged with Bitcoin in some capacity, whether through custody, trading, or other financial products. With over $221.75 billion in assets under management, the findings underscore a growing acceptance and integration of digital assets within traditional financial frameworks.
Broadening horizons: diverse engagement with bitcoin
The study indicates that financial institutions are predominantly engaging with Bitcoin as custodians, with 74% of respondents reporting involvement in this area. However, the use of Bitcoin extends beyond custody, with 67% of these institutions leveraging ETFs (Exchange-Traded Funds) or ETPs (Exchange-Traded Products) to access the digital asset. Additionally, 54% handle Bitcoin as part of client trading activities, highlighting the growing demand for cryptocurrency investment products. The data also shows that approximately 31% of institutions engage in Bitcoin brokerage, while 16% utilise Bitcoin in proprietary trading strategies.
The increasing interaction with Bitcoin is not isolated. The survey reveals that 87% of the institutions are also handling Ethereum, and 83% are involved with other cryptocurrencies or tokens. This trend underscores a broader institutional interest in the digital asset landscape, as firms seek to diversify their portfolios and explore new opportunities in the burgeoning digital finance sector.
Expanding digital asset ecosystem: from derivatives to DeFi and NFTs
The GDF study also sheds light on the types of products and services being utilised by these financial institutions. A significant proportion—40%—reported using cryptocurrency derivatives, with an additional 31% engaging in spot trading and 39% using a combination of both. This preference for derivatives highlights a sophisticated approach to managing exposure to digital assets.
Furthermore, the adoption of decentralised finance (DeFi) protocols is on the rise, with 45% of institutions indicating they have utilised platforms such as Aave or Compound. The survey also reveals that one in four institutions (25%) have deployed or handled non-fungible tokens (NFTs), illustrating a growing interest in unique digital assets.
The institutional adoption of digital assets extends to collaboration with various service providers. Two-thirds (66%) of the surveyed firms work with central crypto exchanges, while 61% collaborate with technical service providers. Stablecoin providers are engaged by 57% of institutions, and custodians are utilised by 47%. Additionally, data service providers and market makers/liquidity providers are used by 46% and 31% of the institutions, respectively, indicating a robust ecosystem supporting institutional participation in the digital asset market.
A strategic shift towards digital finance
The findings from GDF’s study suggest that the trend of institutional investors engaging with Bitcoin and other digital assets is set to continue. Notably, 86% of institutions not currently handling Bitcoin plan to do so in the future, signalling a growing acceptance of cryptocurrencies within the traditional financial sector.
As the digital finance landscape evolves, institutional investors are poised to play a pivotal role in shaping the market’s future. The increasing sophistication in how these assets are managed and the broadening range of services and products available point to a maturing market, with institutions increasingly comfortable navigating the digital asset ecosystem.
The Global Digital Finance (GDF) study offers a snapshot of a rapidly developing industry, reflecting the growing confidence of institutional investors in digital assets. This trend not only signifies a shift in the financial landscape but also heralds a new era of financial innovation and inclusion.
Tradersdna is a leading digital and social media platform for traders and investors. Tradersdna offers premiere resources for trading and investing education, digital resources for personal finance, market analysis and free trading guides. More about TradersDNA Features: What Does It Take to Become an Aggressive Trader? | Everything You Need to Know About White Label Trading Software | Advantages of Automated Forex Trading
 study reveals a surge in institutional engagement with Bitcoin and digital assets, with 93% of financial institutions involved in some capacity. The research highlights the growing adoption of Bitcoin for custody, trading, and ETFs, alongside increasing interest in Ethereum, DeFi protocols, and NFTs.){kind=link}