DBS says Bitcoin buy orders quadrupled despite crypto sell-off

DBS Digital Exchange, the members-only brokerage arm of Singapore-based BDS bank, reported huge increases in the amounts of crypto trades for its clients in June, up from figures seen in April.

The platform, which launched in December 2020, revealed that despite the massive price crash in the second quarter, buy volumes spiked to account for 90% of trading.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Bitcoin and Ethereum volumes bounce

Purchase orders for Bitcoin (BTC/USD) more than quadrupled in June compared to April, while Ethereum (ETH/USD) buy volume rose by more than 65%.

The digital asset exchange did not just see a surge in purchase orders for the two assets. There were also significant jumps in demand for crypto custody services, with BTC seeing demand rise by over 30% and ETH by about 3%.

DBS’ brokerage platform also recorded an increase in its customers, with June accounting for about 10% of the new entrants.

Lionel Lim, the Chief Executive Officer of DBS Digital Exchange, noted in a statement that what the numbers say is that the crypto space is having a “great reset” of sorts. This is happening amid the current market volatility, suggesting a shift from yield trades for institutional clients.

“Investors today are instead seeking out safe harbors to trade and store their digital assets amid the ongoing market volatility,” he noted.

But despite the growing institutional demand, DBS has yet to extend its digital asset services to retail investors. The bank halted plans for a retail offering in April this year, citing the key hurdle as being regulation. Whether that happens in the short term, particularly with a nod from the Monetary Authority of Singapore (MAS) remains to be seen.