DBS Bank Reports 4X Growth in Bitcoin Purchases on DDEx Exchange in June

A major cryptocurrency sell-off in June 2022 has sparked increased interest in Bitcoin (BTC) from institutional investors, according to data from one of the largest banks in Singapore.

The total number of transactions on DDEx more than doubled in June 2022 compared to April 2022, amid growing investor demand for digital assets such as Bitcoin and Ether (ETH). Buy orders on DDEx accounted for 90% of all trades in June as cryptocurrencies traded at significant discounts in mid-2022, DBS said.

Compared to April 2022, the amount of Bitcoin bought on DDEx in June has quadrupled, while the amount of ETH increased by 65%, DBS reported.

“With the digital asset industry experiencing unprecedented volatility, investors who believe in the long-term prospects of digital assets are leaning toward trusted and regulated platforms,” the bank said in the statement.

According to Lionel Lim, CEO of DDEx, the digital asset industry has gone through a “great reset” as the investment narrative has moved away from chasing returns. “Investors today are looking for safe havens to trade and store their digital assets amid ongoing market volatility,” Lim noted.

Related: Summer doldrum? Crypto Volumes Drop 55%, According to CoinShares

As previously reported, June 2022 turned out to be the worst month for Bitcoin price since September 2011, when monthly losses soared to 40%, with the price dropping below $20,000. The ongoing crypto winter has been largely attributed to the crisis of algorithmic stablecoins and the ensuing catastrophe in cryptocurrency lending when cryptocurrency lenders ran out of cash.

“Every participant has to respect the risks and the fact that there are no rescues in space, so if a borrower doesn’t pay back, a lender has to accept their loss. There is no risk-free reward, and often the reward is not worth the risk,” said Trezor crypto analyst Josef Tětek.