The Top Cryptocurrency Use Case for Institutional Investors: Report

Blockchain has emerged as a revolutionary technology with a wide range of use cases. It has the potential to transform financial systems and reshape industries, empowering individuals around the globe.

A survey carried out by Binance Research, the research arm of Binance, and Binance Institutional, has shown the four most common use cases of cryptocurrency.

The research covered global institutional investors with varying levels of assets under management (AUM). Use cases that topped the list are medium of exchange, generating yield, Intraday strategies, and long-term exposure among others.

According to the survey, the most  common usage of cryptocurrency is for Intraday Strategies, where 44.7% of global Institutional investors engage in Intraday  strategies. Also, 17.3% use it for “long-term exposure.” 

Additionally, only 3.8% use it as a medium of exchange while 11.1% engage it for the purpose of generating yield. Moreover, market-making and arbitrage purposes top the list in the “others” category. Interestingly, analyzing the results by fund sizes or assets under management, assets tagged to the Intraday strategy had the highest fund size.

Intraday strategy is a form of a form trading strategy where traders buy and sell financial assets on the same trading day. Further, this trading can be scalping; profiting from small price fluctuations within a trading day. Traders who do engage in the Intraday strategy consider swing or position trading.

Binance VIP and Institutional is the arm that helps institutions and sophisticated investors, optimize their digital asset trading experience in partnership with entities like asset managers.

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