By
Godfrey Benjamin
April 29th, 2024
Bybit CEO Ben Zhou attributes the current crypto bull market to institutional investors, with a 186% increase in institutional capital flows last year.
The cryptocurrency market witnessed a fresh bull run, reaching an all-time high of $73,750 on March 14, fueled not by retail buying but by institutional capital’s steady inflow, asserts Ben Zhou, CEO of Bybit, one of the world’s top three crypto exchanges by trading volume.
Zhou’s insights, shared during a discussion at the Blockchain Life 2024 Dubai conference, paint a picture of a maturing crypto landscape. The era of unregulated exchanges and impulsive retail trading dominated the market. Today, advanced infrastructure, increased security measures, and strategic collaborations attract established financial entities into this domain.
Institutional Investors Drive Bybit’s Growth
From Bybit’s CEO’s viewpoint, institutional investors have propelled this bull market’s momentum. After partnering with esteemed third-party custodians such as Copper and Fireblocks, the exchange registered a notable 186% surge in institutional capital inflow during 2023.
“This bull market so far has been driven by institutions … Since partnering with third-party custodians like Copper and Fireblocks, institutional capital flows increased 186% last year,” said Zhou.
This trend aligns with the long-anticipated introduction of Bitcoin spot ETFs across several major markets. These instruments offer institutions a familiar, regulated investment avenue, allowing smoother entry into the crypto space. Additionally, the upcoming Bitcoin halving event scheduled for April 20 is anticipated to drive this trend to new highs.
Bybit, under Zhou’s direction, has meticulously enhanced its platform since the previous crypto market surge in 2021. These advancements cater specifically to the needs of institutional investors, offering custom solutions for their substantial capital and complex trading strategies.
According to Zhou, Bybit boasts a versatile trading platform where any token can be exchanged for any asset. This flexibility, coupled with the tools for spread trades, arbitrage, and advanced funding rate management, allows institutional clients to employ sophisticated strategies within a secure environment.
“Bybit has a very fluid trading system where you can use any token to trade anything, […] Bybit’s institutional clients have a lot of tools; they can do spread trades, arbitrage funding rates, and all kinds of sophisticated trading,” said Zhou.
Bybit Bridges Complex Financial Instruments for Retail Traders
While institutions take center stage, Bybit hasn’t forgotten its loyal retail investor base of 25 million users. The exchange is actively bridging the gap between complex financial instruments and everyday traders.
“We have a unique product called perpetual protect,” Zhou elaborated. This innovative tool utilizes options contracts to safeguard perpetual positions from significant losses, offering retail investors a safety net often absent in traditional markets.
Bybit’s Unified Trading Account (UTA) further empowers retail traders by providing a holistic view of their portfolios and streamlined access to various crypto assets. This user-friendly design simplifies derivatives and options trading, making these once-intimidating financial instruments more accessible and understandable for a wider audience.