Institutions Shift Crypto Strategies Amid Liquidity Crisis

Bitget executive Gracy Chen has returned from meetings with top Wall Street and European institutions, sharing observations on crypto liquidity. Since last October, top platforms have seen a structural 30-40% drop in liquidity.

This significant decrease has driven up trust costs and forced cautious balance-sheet repairs among these institutions.

Despite this, long-term allocation interest in BTC remains intact. However, the way institutions approach crypto investing has changed.

Institutions are now treating crypto as one piece of global asset allocation, layering multi-asset strategies, RWA linkages, and hedging combinations to mitigate risks.

This shift is driven by a permanent migration away from platforms offering only single-beta exposure. The 40% trading volume lost by crypto exchanges is being replaced by equities, forex, and commodities.