Evaluating The Needs Of Institutional Crypto Clients Across The Globe

Gauging institutional interest and demand for Bitcoin and altcoins is challenging. Not all companies want to acknowledge their stance on cryptocurrencies publicly. Cambridge’s recent report confirms the momentum is shifting, particularly among online merchants and broader crypto-oriented companies. 

Institutional Players Across The Globe

Every continent is home to institutional companies and players eager to explore the cryptocurrency space. How these clients are served, ad which needs they represent differs significantly. In most regions, the “traditional” investors remain the primary customer base. This includes hedge funds, VCs, and other institutional-grade investors. 

Primarily in North America, APAC, and Europe, we see a growing interest among these “traditional” institutional clients. European crypto firms are mainly popular among crypto hedge funds, miners, and online merchants. However, there is an increase in VC firms and traditional hedge funds that show an increasing appetite for Bitcoin and other crypto-assets. 

-Advertisement-

BlocDesk Institutional Demand Crypto
Source: Cambridge

This situation is similar to North America. In that region. 50% of crypto hedge funds tap local providers of industry-specific services. Contrary to Europe, VC firms are second on the list, together with traditional hedge funds. Miners and online merchants in North America appear less keen on exploring this new industry, for the time being. 

When it comes to online merchants, the most significant growth occurs in the Middle East and Africa. Roughly half of the providers are open to Bitcoin, which is a healthy sign. VC Firms, on the other hand, try to steer away from this industry. These statistics will always remain subject to change. Hopefully, the different segments will establish growth globally. 

The Asia-Pacific region seems to attract  a lot of attention from online merchants, miners, and crypto hedge funds. A positive sign of what the future may hold. 

How Big is Institutional Demand?

According to the report, institutional demand for cryptocurrency-related services remains relatively low. That is not surprising, as the industry has only now exited its infancy. North America and Europe note more demand from institutional clients, as roughly 30% of their customers fall in this category. 

BlocDesk APAC Crypto
Source: Techsci Research

In the APAC, LAC, and MEA regions, there is a lot of work ahead. Between 10% and 20% of crypto firms’ clients are of the business or institutional variety. A bit surprising, as all of these regions seem to note growing consumer-oriented demand for Bitcoin and select currencies. One would expect companies and businesses to follow suit, but that isn’t happening yet. 

Overall, the impact of institutional-grade clients on the crypto space seems vastly overestimated. When a big market move occurs, it is not necessarily due to the behavior of these “bigger clients”.