Coinbase CEO Brian Armstrong says institutional players are depositing huge amounts of crypto into the company’s custody platform.
In a new tweet touting the company’s acquisition of the crypto custody platform Xapo, Armstrong says institutional customers are sending $200 to $400 million in crypto to Coinbase Custody every week.
Whether institutions were going to adopt crypto or not was an open question about 12 months ago. I think it's safe to say we now know the answer. We're seeing $200-400M a week in new crypto deposits come in from institutional customers.
— Brian Armstrong (@brian_armstrong) August 16, 2019
Coinbase unveiled a push to bring billions of dollars of Wall Street money into Bitcoin and crypto late last year, with the launch of Coinbase Custody and its over-the-counter (OTC) trading desk.
Vice president and general manager Adam White talked about the company’s master plan for institutions in an interview with CNBC.
“We think this can unlock $10 billion of institutional investor money sitting on the sideline. We’re seeing a rapid increase in attention awareness and adoption in the cryptocurrency market.”
The new numbers from Coinbase coincide with a recent report from Grayscale, the world’s largest cryptocurrency asset manager.
The firm reported a new all-time high in volume in Q2 2019 and hit $2.7 billion in assets under management, thanks in large part to institutional investors.
“Grayscale assets under management (AUM) nearly tripled: Grayscale AUM grew from $926 million at the end of Q1 2019 million to $2.7 billion at the end of Q2, and all ten investment vehicles included in the Grayscale family of products generated positive performance, net of fees for the first time…
Inflows nearly doubled quarter-over-quarter, from $42.7 to $84.8 million, demonstrating that the recent rally in digital asset prices is supported by fresh investment and despite the fact that the Grayscale Bitcoin Trust was temporarily closed to new investment throughout May and June…
This quarter, institutional investors comprised the highest percentage of total demand for Grayscale products (84%) since we began publishing this report in July 2018.”
Since hitting the all-time high, Grayscale AUM dipped along with the price of Bitcoin, with the figure now standing at $2.5 billion.