Opimas announced that about $ 200 billion of Bitcoin is at risk. Institutional investors and some cryptocurrency exchanges are also at risk, according to the Opimas.
According to statements in the Hedgeweek news, Opimas said that some institutional investors and major crypto exchanges rely on below-average custody services when storing client assets. Although there are reputable custody services that are trusted at the corporate level, it is stated that none of them offer an equal solution.
High risk for institutional investors
According to the statement, those holding huge amounts of Bitcoin or other cryptocurrency still rely on storage services designed for individual investors. Although some applications such as individual wallets are considered safe and reputable, such an approach is reported to be operational risk for institutional investors.
Apart from cold wallet and custody services, it is stated that some of the institutional investors keep their assets in hot wallets. According to the company, about 22 percent of cryptocurrencies held by corporations are partially protected in risky ways.
Increase expected for corporations
Opimas states that the annual revenue generated by the institutional cryptocurrency brokerage services and custody market is roughly $ 2 billion. This amount is estimated to reach 8 billion dollars by 2026. Most of the income is attributed to brokerage services.
While 20% of the total value of the crypto money market is in the wallet of institutional investors, Opimas expects this number to increase to over 50% by 2026 with the developments in brokerage and custody services.