Binance Research: most large Bitcoin and Ethereum investors hold stablecoins, use cold wallets

The research arm of Binance, the world's largest crypto exchange by trading volume, has published a report that analyzes the results of a survey completed by institutional digital asset investors.

According to the report, Binance surveyed over 100 institutional and VIP clients.

The Binance team mentioned that the survey results should be interpreted with "Extreme caution" and must not be generalized, because of the relatively small sample size of only 41 institutional and VIP clients.

The Binance team revealed that almost all survey respondents said they use stablecoins for trading purposes or as a store-of-value.

As noted in Binance's report, 87 percent of survey participants stated that they use over-the-counter trading desks such as Huobi OTC, Galaxy Digital, and Binance Trading Desk.

Clients with cryptoasset portfolios worth at least $25 million keep most of their holdings in cold storage wallets or use trusted third-party custodial solutions, according to Binance's survey results.

Interestingly, most institutional investors do not keep funds in hot wallets such as Binance's Trust Wallet or the Coinbase Wallet, the report revealed.

Crypto industry growth drivers identified by Binance's institutional traders include the potential introduction of Bitcoin ETFs, established brokers such as Fidelity offering crypto-related services, and the development of options contracts.

Binance's survey respondents also believe that the launch of stablecoins by Facebook and J.P. Morgan may be seen as a positive development for the crypto space.

Many large investors don't use Binance, results may not be accurate.