Huobi has seen a significant increase in bitcoin trading from institutional investors over the past year, the exchange said in a statement.
“We have seen a 3-4X growth in institutional trading on derivative markets since early last year. Institutional clients now account for 40% of our trading volume,” said Ciara Sun, VP of Huobi Global Markets.
They single out growth from Russia as “especially pleasing” with this formally China based exchange claiming it accounts for “5% of crypto assets in the market.”
According to their analysis investors are attracted to “arbitrage opportunities in crypto as an emerging market” and they say “digital assets can offer investors a way to hedge risk against government intervention.”
Huobi and what back then was called OKCoin where the biggest crypto exchanges by far before China closed them down in September 2017.
Since then Huobi has been invited to return, signing an agreement to build a headquarter in Chongqing.
We haven’t heard the same for OKEx, but both continue to serve the Chinese market through Over the Counter (OTC) trading platforms.
Both also have futures, which is what attracted traders to their platforms as at the time they provided the highest leverage of up to 20x.
“The institutional trading percentage on Huobi futures is estimated to as high as 30 to 40 percent,” they say, showing there’s greater interest now from professional investors.
“An above average range annual return can be seen as good performance in the traditional market, but is actually a quite mediocre return in the crypto derivative market,” Sun said.