Binance Research analyzed typologies and views from the most significant VIP and institutional clients of Binance’s crypto services. Here are some of our findings.
Binance Research, the market research and analysis arm of Binance, found that many institutional crypto traders expect Bitcoin to maintain a considerable market dominance by the end of 2019, which echoes their fear of the altcoin market losing interest from retail participants. They have also shown increased interest in crypto staking over other crypto services such as decentralized exchanges and lending.
In the recent Institutional Market Insights - Second Edition report, Binance Research compiled findings from a survey of various institutional and VIP clients of Binance. They were asked about their profiles as institutions, as well as sentiments on several topics, like stablecoins, regulations, and other relevant topics in the crypto space. This is the second such survey conducted on institutional clients, following an inaugural survey on market sentiments conducted last June.
For instance, our survey revealed that USD Tether (USDT) remained the most widely used stablecoin due to greater liquidity and higher market capitalization, despite ongoing legal issues that are considered one of the most significant risks for the industry. Institutional clients have also shown increased interest in stablecoins backed by exchanges, such as USDC and BUSD.
“Regulations remained one of the critical aspects of interest, both as a risk and a potential growth driver for the future of this industry. Meanwhile, sophistication on the product side was viewed positively by participants as ETFs, derivatives, and brokerage services were ranked as top potential growth drivers for the crypto-industry,” according to Binance Research.
The report also noted that clients do not consider Libra and CBDC, the highly-anticipated crypto ventures of Facebook and China, respectively, to present a risk for the industry. Many clients even ranked them as growth drivers.
The survey consolidated responses from 76 participants, mostly representing firms, funds, and institutions with digital asset allocations ranging from $100,000 to more than $25,000,000.
Most of the respondents have 1 to 3 years of experience in the cryptoasset industry, following years of conventional financial industry work experience. More than 25% of respondents have 7+ years of traditional finance experience.
“The three most commonly followed investment strategies were high-frequency prop trading (35.5%), technical analysis (25.0%), and market-making (19.7%). 54% of respondents kept their cryptoasset portfolio between 1-10 coins, a characteristic reflected across all investment and trading strategies,” the report added.