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Cryptocurrency exchange COINBASE purchased a digital asset management river, an institutional digital asset manager and an investment advisor registered with the Securities and Exchange Commission (sec). This acquisition makes it possible for the currency base "to expand institutional access to digital assets," crypto exchange said.
Coinbase Expanding Institutional Access to Crypto
Coinbase (Nasdaq: COIN) announced Friday that it has acquired One River Digital Asset Management (ORDAM), a subsidiary of One River Asset Management. ORDAM is an institutional digital asset manager and a Securities and Exchange Commission (SEC) registered investment counsellor.
One River will be changed to Coinbase Asset Management (CBAM), and will function as a fully-fledged independent company and subsidiary of Coinbase," crypto exchange explained, elaborating:
The procurement aligns with our long-term strategy to provide additional opportunities for institutions to participate in the cryptoeconomy.
Cbam will be separated from the trading and currency activities of the coin base, it was noted, adding that eric peters will continue as Managing Director and Director of Ordam Investments (now cbam). He also serves as President and Chief Executive Officer and Chief Asset Officer of a watercourse.
Detailed coinbase that it is already at the service of a lot of institutional investors. "Starting with the fourth quarter of 2022, about 25% of the 100 largest hedge funds in the world by AUM assets have chosen to integrate with Coinbase," the crypto exchange said, adding:
With more than $130 billion in quarterly institutional trading volume and more than $50 billion in institutional assets on the platform, Coinbase operates in the middle of the institutional digital asset market.
Notwithstanding the crypto winter, institutional investors continue to focus on crypto assets. A recent survey by Coinbase showed that institutional investors increased their crypto allocations during crypto winter. In January, a different survey showed that institutional investors see “a strong year ahead for bitcoin,” with 65% of survey participants expecting to hit $100K in the long term.
Coinbase’s Friday announcement adds:
With this acquisition, we are excited to welcome ORDAM’s best-in-class team to Coinbase and to partner more deeply to expand institutional access to digital assets.
How would you rate the acquisition of a digital asset management coin base to extend its crypto products and services to institutional investors? Please let us know in the comments below.
