Cryptocurrency exchange Coinbase has acquired One River Digital Asset Management, an institutional digital asset manager and investment adviser registered with the Securities and Exchange Commission (SEC). This acquisition allows Coinbase to “broaden institutional access to digital assets,” the crypto exchange said.
Coinbase Expands 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 investment adviser registered with the Securities and Exchange Commission (SEC).
One River Digital Asset Management will “transition to become Coinbase Asset Management (CBAM), and will operate as an independent business and wholly owned subsidiary of Coinbase,” the crypto exchange explained, explaining:
The acquisition aligns with our long-term strategy to unlock more opportunities for institutions to participate in the crypto economy.
CBAM will be spun off from Coinbase’s trading and exchange businesses, the exchange noted, adding that Eric Peters will continue to serve as CEO and chief investment officer of ORDAM (now CBAM). He is also the CEO and CIO of One River Asset Management.
Coinbase detailed that it is already serving many institutional investors. “As of Q4 2022, approximately 25% of the world’s 100 largest hedge funds by reported assets under management have chosen to join Coinbase,” the crypto exchange said, adding:
With over $130 billion of quarterly institutional trading volume 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 Coinbase survey showed that institutional investors increased their cryptocurrency allocations during the crypto winter. In January, a different survey showed that institutional investors see “a strong year ahead for bitcoin,” with 65% of survey participants expecting BTC to get to $100K in the long run.
Coinbase’s Friday announcement adds:
With this acquisition, we are excited to welcome the best ORDAM team to Coinbase and partner deeper to expand institutional access to digital assets.
What do you think about Coinbase acquiring One River Digital Asset Management to expand its crypto products and services to institutional investors? Let us know in the comments section.
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