Crypto finance company Circle says institutional money is flowing into cryptocurrency, but adoption is coming slowly, not in “the major sweeping manner some in the industry had exuberantly predicted.”
In a Medium post, Circle reported $24 billion in over-the-counter (OTC) trades in 2018, attributing much of it to growing interest from institutional investors.
OTC trading takes place in private and usually involve enormous sums of money. The trades are facilitated by brokers or private trading desks like Circle.
Hedge funds, VC firms, and Family Offices
Circle outlines a core group of clients including miners, exchanges, project founders, and developers. However, it also points to a new wave of institutional clients.
Circle is seeing new volume from crypto funds, hedge funds, venture capital firms, and family offices.
Despite the downturn in price, Circle maintains that institutional adoption is growing. It now counts 1,000 institutional partners including asset managers, high-net-worth individuals, and endowments.
According to Circle’s medium post, “institutional involvement in crypto grew steadily and incrementally rather than in the major sweeping manner some in the industry had exuberantly predicted.”
The company expects the trend to continue through 2019, pointing to the growth of stablecoins, regulatory clarity, and custody services:
“We anticipate further incremental growth in institutional adoption catalyzed by stablecoin usage, advancements in institutional custody solutions, increasing regulatory clarity particularly in the U.S., and improvements and innovation in core crypto infrastructure.”
Circle facilitated $24 billion in over-the-counter (OTC) trading in 2018. The OTC platform, known as Circle Trade, processed more than 10,000 trades from 600 different investors.