Institutional investors expect Crypto ETFs are safer than Crypto Exchanges, ByBit & Coinbase hack

Due to the recent hack of crypto exchanges ByBit and Coinbase, once again, Crypto investors like Institutions, Traders, banks, and P2P traders believe that Crypto traders and investors are facing a loss of more than $10 billion USD in the last 2 years. Cryptocurrency exchange Coinbase reported that cybercriminals stole customer information by bribing some customer service agents and are demanding a $20 million ransom in Bitcoin. Coinbase has refused to pay and is offering a $20 million bounty for information leading to the attackers’ arrest. Although such scams keep happening between crypto exchanges and crypto owners but many people are still not happy with Coinbase and Binance after FTX, Bybit, and WazirX because they believe that one day all these crypto exchanges can put the money of all the top institutions of the world at a huge risk. It has recently been reported that North Korea’s top hacker groups have already included many crypto exchanges in their target list, which could cause major damage to crypto exchanges like Coinbase, Binance, and Robinhood in the future. For now, we know that US companies have the biggest role in the list of Crypto ETFs providers because, apart from the US, no other banks, stock markets, funds, or companies have yet launched Bitcoin or Crypto ETFs.

Why institutional crypto investors withdraw funds from Crypto Exchanges, including Binance, Coinbase, and ByBit?

It is being said that now almost $3 trillion worth of Crypto traders and investors across the world are turning towards Bitcoin or Crypto ETFs, as they have said that Crypto ETFs are safer, secure, regulated, familiar, and accessible than Crypto Exchanges. Recently, we have seen billions of dollars starting to flow into BlackRock, iShares, and top US crypto and Bitcoin ETFs, which indicates that in the future, institutional investors will also invest more in Bitcoin, DEX, Web3, or Crypto ETFs so that their assets remain safe in the future. Recently, it has been said that crypto exchanges like Binance, which have P2P trading opportunities, are still safe for crypto trading, but the assets of those crypto exchanges that have direct payment through Credit Card, Debit Card, and PayPal are considered to be the most risky. Foreign investors, including those from India, can invest in US ETFs through direct or indirect avenues. Direct investment involves opening a US brokerage account with a US-based broker that caters to international clients. Alternatively, indirect investment can be achieved through local crypto brokers with international ties or by investing in US ETFs that hold US-listed ETFs. The total net assets of the US ETF market are around $9 trillion, with institutional investors owning a significant portion of that. Institutional ETF ownership has been growing, with 13F filings showing a growth to $1,139 billion in the US. This growth reflects the increasing popularity of ETFs among institutional investors who see them as a valuable investment tool. Now it has been told that companies like BlackRock in Europe, Asia, Africa, and America are bringing Crypto ETFs, in which there is a possibility of inflow of approximately $3 trillion by 2028.