Traditional Traders Show Growing Interest in Crypto

A survey published on March 31 revealed that senior trading executives believe that large companies in the business would be interested in taking advantage of the recent crypto plunge, particularly Bitcoin (BTC).

According to the Adoption of Digital Asset Trading report published by Acuiti management intelligence platform, about 100 venues capable of trading cryptocurrencies have launched for institutional clients.

The survey shows greater adoption of digital assets among sell-side service providers (26%) than traditional trading firms (17%). However, it clarified that the adoption rates are limited to the CME or Bakkt.

Bitcoin and Ethereum derivatives are of major interest

All the crypto trading firms that were studied in the report realized that there was a growing interest in Bitcoin derivatives. About 57% of traditional trading firms have traded Bitcoin, while 29% traded Ethereum (ETH) derivatives.

One of the findings of the survey is that although XRP is being ranked as the eighth most popular digital asset, XRP/USD was ranked 5th in the ranking of the preferred cryptocurrency pair within institutional firms. Their top three primary considerations are liquidity, volatility, and arbitrage opportunities.

Future looks bright despite security concerns

One of the biggest concerns among all trading institutions surveyed, including those still waiting to trade digital assets like cryptocurrencies, was the security vulnerabilities of exchange and fears over hacking.

Another concern detailed in the report is fear of reputational damage, which is why many trading institutions do not want to offer digital assets among their portfolio.

Although the survey still believes that adoption rates remain low, the future looks bright in terms of adoption. 97% of traditional trading firms are considering trading digital assets within the next two years.