PayPal Reports Decrease in Crypto Holdings, Signaling Shift Towards Institutional Trading
Declining Crypto Holdings at PayPal
Quarterly Decline Despite Price Increase
PayPal, the online payments giant, experienced a decrease in its crypto holdings in the third quarter, hinting at a growing presence of institutional traders in the market. The total amount of crypto held by PayPal customers dropped by nearly 11% to around $2.17 billion in the latest quarter, as disclosed in a filing with the US Securities and Exchange Commission. Despite the quarterly price increases of both Bitcoin and Ether, PayPal’s holdings in these cryptocurrencies decreased by 1% and 27%, respectively.
Retail vs. Institutional Demand
Rising Institutional Interest
CryptoQuant, a research firm, highlighted the increasing institutional demand for Bitcoin, with more institutional investors entering the market compared to retail traders. Data shows that institutional demand is twice as high as retail demand in custodial wallets, indicating a significant shift towards institutional trading.
Challenges in Retail Market
On the other hand, retail interest in cryptocurrencies appears to be lagging, with search interest for Bitcoin significantly lower than during previous peaks. The upcoming quarterly reports from Robinhood and Coinbase will shed more light on the retail market’s appetite for crypto assets.
Crypto Market Update
Bitcoin is currently trading at $72,139, up by 1.7% in the last 24 hours, while Ethereum is priced at $2,667, reflecting a 2.1% increase.
Stay Informed
For more exclusive updates and insights, our Dubai Correspondent, Ben Weiss, can be reached at [email protected].
By redefining its crypto holdings and witnessing a surge in institutional interest, PayPal’s experience reflects the evolving landscape of the crypto market, with institutional investors playing an increasingly dominant role in shaping its dynamics.
The information in the article is for informational purposes only. It does not constitute any investment advice. The author and CryptoBlockNews.com are not responsible for your profits or losses arising from your investments. Investment is ultimately based on many foundations such as knowledge, accumulation, experience, research and personal decisions.
