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 advisor with the Securities and Exchange Commission (SEC). This acquisition allows Coinbase to “expand institutional access to digital assets,” according to the crypto exchange.

Coinbase expands institutional access to crypto

Coinbase (Nasdaq: COIN) announced on 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 advisor with the Securities and Exchange Commission (SEC).

One River Digital Asset Management “will become Coinbase Asset Management (CBAM) and will operate as an independent company and a wholly owned subsidiary of Coinbase,” the crypto exchange stated, stating:

The acquisition is in line with our long-term strategy to provide more opportunities for institutions to participate in the crypto economy.

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

Coinbase explained that it already serves many institutional investors. “In Q4 2022, around 25% of the world’s top 100 hedge funds by reported assets under management chose to onboard to Coinbase,” the crypto exchange said, adding:

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

Despite the crypto winter, institutional investors continue to show interest in crypto assets. A recent Coinbase survey has shown that institutional investors increased their crypto allocations during the crypto winter. In January, another survey showed that institutional investors were “having a strong year for Bitcoin’, with 65% of survey participants expecting BTC to reach $100,000 in the long-term.

Coinbase’s Friday announcement adds:

With this acquisition, we are pleased to welcome ORDAM’s world-class team to Coinbase and to work more closely together to expand institutional access to digital assets.

What are your thoughts on Coinbase’s acquisition of One River Digital Asset Management to expand its crypto products and services to institutional investors? Let us know in the comment section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economics and cryptography.

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