Cryptocurrency exchange Coinbase has acquired One River Digital Asset Management, an institutional digital asset manager and registered investment advisor with the Securities and Exchange Commission (SEC). The acquisition allows Coinbase to “expand institutional access to digital assets,” the cryptocurrency exchange said in a statement.
Coinbase Expands Institutional Access to Cryptocurrency
On Friday, Coinbase (Nasdaq: COIN) announced the acquisition of One River Digital Asset Management (ORDAM), a subsidiary of One River Asset Management. ORDAM is an institutional digital asset manager and registered investment advisor with the Securities and Exchange Commission (SEC).
One River Digital Asset Management “will become Coinbase Asset Management (CBAM) and will operate as an independent business and a wholly owned subsidiary of Coinbase,” the cryptocurrency exchange explained, adding:
The acquisition is in line with our long-term strategy to open up additional opportunities for institutions to participate in the crypto economy.
The exchange noted that CBAM will be separated from Coinbase’s trading and exchange business, adding that Eric Peters will continue as the chief executive officer and chief investment officer of ORDAM (now CBAM). He is also the CEO and CIO of One River Asset Management.
Coinbase clarified that it already caters to many institutional investors. “As of the fourth quarter of 2022, approximately 25% of the top 100 hedge funds in the world, by reported assets under management, have chosen Coinbase,” the cryptocurrency exchange said in a statement.
With over $130 billion of institutional trading volume quarterly and over $50 billion of institutional assets on the platform, Coinbase operates at the center of the institutional digital asset market.
Despite the crypto winter, institutional investors continue to show interest in crypto assets. A recent survey by Coinbase showed that institutional investors increased their crypto allocations during the crypto winter. Another survey conducted in January found that institutional investors expect a “strong year for Bitcoin,” with 65% of survey participants expecting BTC reach 100 thousand dollars in the long run.
Friday’s Coinbase announcement adds:
With this acquisition, we are excited to welcome the best-in-class ORDAM team to Coinbase and work more closely to expand institutional access to digital assets.
What do you think about the acquisition of Coinbase One River Digital Asset Management to expand its crypto products and services for institutional investors? Let us know in the comments below.
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Credit : news.bitcoin.com
