In analysing investment behaviours on the BTC Markets exchange between FY2020–21 and FY23–24, BTC Markets found that non-retail investors have seen their initial deposits soar by an impressive 189 per cent, while retail investors have faced a 15 per cent decline.
According to BTC Markets chief executive Caroline Bowler, this shift underscores the increasing role of established investors in shaping the future of digital assets.
“Our latest analysis reveals that trading volumes are now driven by more sophisticated investors, instead of the small retail investors that typified the early crypto boom,” Bowler said.
“This resurgence among more traditional investors reflects increased confidence that the asset class and associated technologies align with their investment thesis.”
She added that increased interest from traditional investors, who are known for their thorough due diligence, shows increased confidence in cryptocurrencies and associated technologies aligning with their investment strategies.
Notably, these investors are favouring a “buy and hold” approach rather than speculative trading.
Despite bitcoin reaching an all-time high in March, Bowler further suggests that the market remains in an early recovery phase, countering views of an imminent bull market.
“Although trading volumes have improved, they have still not yet matched the peaks of FY21. The approval of spot bitcoin and Ethereum ETFs by US regulators led to growing institutional activity, but persistent inflation, rising interest rates, and market volatility have tempered this momentum.
“Moreover, the fourth bitcoin halving event in April 2024, while symbolic, took place in a more mature market and resulted in a gradual price increase rather than a significant surge,” she said.
As the market continues to mature, Bowler predicts that the narrative surrounding cryptocurrency will evolve.
“Mainstream global financial institutions will increasingly steer the conversation, which makes us optimistic about crypto’s future.”
“Financial institutions like JP Morgan, Standard Chartered, Goldman Sachs … are not merely running proof-of-concept experiments – they’re integrating these technologies into their core operations and addressing interoperability challenges.”
In contrast, she pointed out that Australia’s asset management and superannuation sectors remain somewhat disconnected from these discussions.
“Despite financial services being a major contributor to our economy and employing over 450,000 people, we are lagging in technology adoption compared to other financial markets and are often seen as a ‘sideshow’,” she said.
“Hopefully, the global financial institutions now putting blockchain and crypto at the forefront of their activities can set a precedent for Australia.”
Earlier this year, Bowler said the integration of cryptocurrency into mainstream financial institutions is a crucial consideration for Aussie investors.
“The recent decision by the SEC is seen as a pivotal step, opening up bitcoin to retail and institutional investors,” she said at the time.
“The lasting impacts of these developments are expected to unfold progressively over time, influencing cryptocurrency markets and investor participation.”
