Coinbase says institutional crypto holdings soared 170% in the first quarter as big players moved into bitcoin

Coinbase says institutional crypto holdings soared 170% in the first quarter as big players moved into bitcoin

Cryptocurrency holdings by institutional investors grew 170% on the Coinbase exchange in the first quarter, according to figures released by the company, as big players such as hedge funds and asset managers bought into bitcoin. Coinbase said on Tuesday that institutional holdings on the platform - the biggest crypto exchange in the US - rose from $45 billion at the end of 2020 to $122 billion at the end of the March. The data gives a sense of the pull that the soaring bitcoin price exerted on financial institutions in the first few months of 2021. were among the big names to say they'd be getting involved. "Over time, we have seen a variety of factors pulling institutional investors into the space. These range from hedging against inflation, diversification of corporate balance sheets and the desire for broader engagement in the digital economy," said Drew Robinson, head of hedge fund sales at Coinbase. The exchange, which went public earlier in 2021 and , said it currently serves over 8,000 institutional clients, many of which use its offline crypto storage solutions. However, bitcoin has plunged in recent weeks, denting the appeal of the token compared to more traditional assets. Shares in