Institutional involvement in the crypto market is rising as more people worldwide adopt digital assets as a financial instrument. Last year, this growth was represented by the United States’ approval of two crypto exchange-traded funds (ETFs) and Europe’s adoption of the MiCA framework.
Catherine Chen, Head of VIP at Binance, told BeInCrypto that she expects 2025 to continue driving investor interest. Chen expects other countries to follow suit as the crypto market anticipates more favorable conditions under Donald Trump as the US president.
The Number of Institutional Investors in Crypto Rises
The crypto market is undergoing a significant transformation, characterized by a notable increase in the involvement of institutional investors.
This influx of capital from institutional players is fundamentally reshaping the crypto market, transitioning it from one primarily driven by retail investors to one characterized by increased institutional dominance.
According to Chen, Binance, one of the largest crypto exchanges by trading volume, has witnessed this transformation.
“At a global level we are already seeing a very rapid growth of institutional investors entering this market. In 2024, almost every quarter, the number of registered institutional clients growth doubled. In the first quarter, we saw a 25% increase. In the second quarter, 50%. Right now we’re at almost 100% from the beginning of the year,” she said.
Last year proved to be emblematic of the progress of cryptocurrency adoption across the globe. Despite resistance, digital assets won battles on different fronts, from the approval of regulatory frameworks to crypto adoption within traditional business models.
