Coinbase Acquires One River Digital to Expand Institutional Access to Crypto Assets – On Friday, Coinbase (Nasdaq: COIN) revealed its acquisition of One River Digital Asset Management (ORDAM), a Securities and Exchange Commission (SEC) registered investment adviser and institutional digital asset manager that is a subsidiary of One River Asset Management.
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, elaborating: “The acquisition aligns with our long-term strategy to unlock further opportunities for institutions to participate in the cryptoeconomy.”
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Coinbase mentioned that CBAM, formerly known as ORDAM, will be kept separate from Coinbase’s trading and exchange operations. Eric Peters will retain his roles as the Chief Executive Officer and Chief Investment Officer of CBAM while also holding the same positions at One River Asset Management. Additionally, Coinbase highlighted that it already caters to a substantial number of institutional investors.
“As of Q4 2022, roughly 25% of the 100 largest hedge funds in the world by reported assets under management have chosen to onboard with Coinbase,” the crypto exchange said, adding: “With over $130 billion of quarterly institutional trading volume and over $50 billion of institutional assets on platform, Coinbase operates at the center of the institutional digital asset market.” Institutional investors have sustained their fascination with crypto assets, even during the “crypto winter” period.
According to a recent Coinbase survey, institutional investors boosted their crypto allocations throughout this time. In January, a different survey showed that institutional investors see “a strong year ahead for bitcoin,” with 65% of survey participants expecting BTC 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.”
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