Bitget CEO Gracy Chen said recent conversations with traders and institutional clients in Europe and the U.S. point to a structural shift in crypto market behavior. In a post on X, Chen said liquidity has contracted structurally since Oct. 10 last year, with even top-tier platforms generally seeing declines of 30% to 40%. She said the effect has gone beyond weaker trading volumes, raising the cost of trust across the market.
Even so, Chen said institutional interest in long-term crypto allocation has not faded. What has changed, in her view, is how those investors frame the asset class. Rather than treating crypto as a standalone speculative trade, institutions are increasingly viewing it through a more traditional finance lens, as one component in a broader global asset-allocation mix.
Chen added that multi-asset strategies, links to real-world assets, and hedging portfolios are becoming more common. She also said institutions and VIP clients are no longer focused only on alpha generation. Asset safety, risk controls, and capital efficiency now rank much higher, alongside demand for transparent third-party custody and account structures that allow capital to move more flexibly.
Bitget CEO Gracy Chen said recent talks with traders and institutional clients in Europe and the U.S. show that institutional conviction in crypto as a long-term allocation has held up, even as the way those investors participate in the market is changing.
In a post on X, Chen said the contraction in crypto liquidity since Oct. 10 last year has been structural. Even leading platforms have generally seen liquidity fall by 30% to 40%, she said. The impact is not limited to lower trading volumes; it has also increased the cost of trust.
Long-term allocation interest remains intact
Despite that backdrop, Chen said institutional interest in long-term crypto allocation has not weakened. The more visible shift, she said, is that institutions are now looking at crypto through a more mature traditional finance framework. Instead of treating it as a standalone speculative product, they increasingly see it as one piece of a global asset-allocation puzzle.
Focus shifts to portfolio construction and controls
According to Chen, multi-asset strategies, real-world asset links, and hedged portfolios are becoming the new norm. At the same time, institutions and VIP clients are no longer focused purely on alpha. Their attention has moved toward asset security, risk management, and capital efficiency.
Chen wrote: 「They don’t want all their eggs in one basket, and they also don’t want capital sitting idle in low-efficiency structures. They want transparent third-party custody, clear risk-control logic, and account systems that let capital move with flexibility.」
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