Tuesday, 02 January 2024 12:17 GMT

$4Tr Crypto Market Powers Mena Institutional Trading Boom: Bitoasis


(MENAFN- Khaleej Times)

Institutional and high-net-worth investors are now driving more than two-thirds of cryptocurrency trading volumes across the Middle East and North Africa, underlining a decisive shift away from speculative retail activity towards a more mature, regulation-led digital asset market, according to BitOasis.

The Dubai-based platform said in its newly released 2025 annual report that the regional crypto ecosystem reached a turning point last year as clearer regulatory frameworks, rising institutional participation and more disciplined retail behaviour reshaped market dynamics. Globally, digital assets also gained momentum, with total market capitalisation surpassing $4 trillion for the first time in 2025 and Bitcoin hitting fresh record highs amid policy progress in major economies.

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“2025 marked a defining year for digital assets globally,” said Ola Doudin, co-founder and chief executive of BitOasis.“In parallel, the UAE and Bahrain emerged as global standard-bearers for progressive, enabling regulation. Investor participation increased meaningfully on BitOasis across both retail and institutional segments, with users applying the same discipline and portfolio rigour they would to traditional asset classes.”

Industry data supports this trend. Chainalysis has ranked the UAE among the world's top crypto adoption hubs, citing strong inflows from institutional investors and growing integration of digital assets into mainstream finance. The Dubai Virtual Assets Regulatory Authority and Bahrain's Central Bank licensing regime have also helped attract global exchanges, market makers and custodians, strengthening market infrastructure and investor confidence.

BitOasis data shows that institutional and VIP clients accounted for more than 66 per cent of total trading volumes in 2025. The platform recorded a 66 per cent year-on-year increase in high-value traders and high-net-worth individuals, alongside 100 per cent growth in corporate and treasury clients across the region. To support this shift, the company expanded its institutional-grade services, including over-the-counter block trading, priority banking with faster dirham settlement rails, dedicated relationship management and a low-latency trading API with 99.9 per cent uptime.

Retail behaviour has also evolved. BitOasis reported that users held an average of three tokens per portfolio, with Bitcoin remaining the most widely held and traded blue-chip asset. DOGE emerged as the most actively traded token overall, while BTC-AED was the most popular trading pair. Peak trading activity was concentrated on Mondays around 18:00 Gulf Standard Time, indicating time-bound participation aligned with global market hours rather than round-the-clock speculative trading. The platform's average customer age stood at 39, pointing to a more experienced investor base.

Across the wider market, institutional interest is accelerating. According to regional wealth surveys, about 71 per cent of ultra-high-net-worth families in the UAE believe they should make strategic allocations to digital assets, above the global average of 69 per cent, while nearly 40 per cent of high-net-worth individuals already hold crypto assets. Analysts say this reflects a broader reallocation of capital towards alternative assets as regional investors seek diversification and higher long-term returns.

BitOasis is positioning itself to capture the next phase of growth tied to intergenerational wealth transfer in the Gulf.“With GCC wealth projected to reach $3.5 trillion by 2027, we are entering a defining decade for capital formation in the region,” Doudin said.“Our priority is to build resilient, regulation-first infrastructure that can support this transition at scale.”

The company plans to expand its product suite, including preparations to introduce regulated derivatives in Bahrain, while continuing to invest in security, liquidity and governance standards. As part of DCX Group, BitOasis has also benefited from global partnerships and technology integration, including Coinbase's expanded investment in the parent group last year, strengthening its operational and compliance capabilities.

Market observers say the shift towards institutional dominance signals a new phase for the region's crypto industry. As regulation deepens and professional capital flows increase, Mena's digital asset market is moving closer to the structure and stability of traditional financial markets - a transition that could anchor long-term growth even as global crypto cycles remain volatile.

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Khaleej Times

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