Coinbase Acquires One River Digital to Expand Institutional Access to Crypto Assets

Cryptocurrency exchange Coinbase has acquired One River Digital Asset Management, an institutional digital asset manager and registered investment adviser with the Securities and Exchange Commission (SEC). This acquisition allows Coinbase “to expand institutional access to digital assets,” the crypto exchange said.

Coinbase (Nasdaq: COIN) announced Friday that it has acquired One River Digital Asset Management (ORDAM), a subsidiary of One River Asset Management. ORDAM is an institutional digital asset manager and registered investment adviser with the Securities and Exchange Commission (SEC).

One River Digital Asset Management “will transition to become Coinbase Asset Management (CBAM), and will operate as an independent business and wholly-owned subsidiary of Coinbase,” the crypto exchange explained, elaborating:

The acquisition aligns with our long-term strategy to unlock further opportunities for institutions to participate in the cryptoeconomy.

CBAM will be segregated from Coinbase’s trading and exchange businesses, the exchange noted, adding that Eric Peters will continue to serve as the chief executive officer and chief investment officer of ORDAM (now CBAM). He is also the CEO And CIO of One River Asset Management.

Coinbase detailed that it is already serving many institutional investors. “As of Q4 2022, roughly 25% of the 100 largest hedge funds in the world by reported assets under management have chosen to onboard with Coinbase,” the crypto exchange said, adding:

With over $130 billion of quarterly institutional trading volume and over $50 billion of institutional assets on platform, Coinbase operates at the center of the institutional digital asset market.

Despite crypto winter, institutional investors continue to show interest in crypto assets. A recent survey by Coinbase showed that institutional investors increased their crypto allocations during crypto winter. In January, a different survey showed that institutional investors see “a strong year ahead for bitcoin,” with 65% of survey participants expecting BTC to hit $100K in the long term.

Coinbase’s Friday announcement adds:

With this acquisition, we are excited to welcome ORDAM’s best-in-class team to Coinbase and to partner more deeply to expand institutional access to digital assets.

What do you think about Coinbase acquiring One River Digital Asset Management to expand its crypto products and services to institutional investors? Let us know in the comments section below.