February 22, 2024

Binance study: 92% of institutional investors store crypto assets on exchanges

According to Binance Research, the Vast Majority of Institutional Investors Hold Their Cryptocurrencieson exchanges, despite security risks.

As part of a study conducted by the exchangecryptocurrency Binance, 76 institutional investors were surveyed. The survey was part of Binance Institutional Market Insights research. The results revealed that 92% of institutional investors (70 out of 76 respondents) store their bitcoins, stablecoins and other crypto assets with intermediaries.

“Exchanges remain the most popular option forstorage of crypto assets among our institutional and VIP clients", — notes Binance. “When moving to self-storage, cold wallets — the second most popular option, given their increased security and the control they provide. Third-party custodial services were the least popular among survey participants, preferred by only 2.6% of investors (2 out of 76).”

The choice of even such large investors is difficultcall it reckless, since cryptocurrency exchanges continue to regularly undergo hacking and hacker attacks. In November, the little-known Vietnamese cryptocurrency exchange VinDAX was subject to a hacker attack, as a result of which about $500,000 in cryptocurrencies was stolen from the site.

In July, the Bitpoint platform became a victim of hackers, and in June, the Bitrue exchange. Since the beginning of the year, the list of affected exchanges has been supplemented by Binance itself, as well as Bithumb, DragonEX and Cryptopia.