Xapo Bank Sees Bitcoin Trading Surge as Wealthy Investors Buy the Dip

Xapo Bank Reports Bitcoin Trading Surge in Q1 as Wealthy Clients Buy the Dip

Gibraltar-based Xapo Bank, a private bank and regulated Bitcoin custodian, saw a notable uptick in Bitcoin trading volume during the first quarter of 2025, as market volatility created fresh buying opportunities for its high-net-worth clients. The bank reported a 14.2% increase in trading volume compared to the previous quarter, driven by strategic accumulation during Bitcoin’s price slump.

Despite Bitcoin logging its worst Q1 performance since 2018 — falling 13% over the quarter — Xapo’s affluent client base remained undeterred.

“Our members actively bought the dip, demonstrating their commitment to Bitcoin’s long-term potential,” Xapo said in an April 14 statement.

Institutional Demand Defies Market Turmoil

The first quarter of 2025 was marked by global financial uncertainty and growing concerns over the future of U.S. dollar dominance. Still, Xapo Bank’s performance highlighted a rising appetite for Bitcoin and digital assets among institutional and private wealth clients.

Euro-denominated deposits surged 50% quarter-on-quarter, as investors responded to macroeconomic fears and braced for geopolitical developments, including former President Trump’s controversial “Liberation Day” initiative set for April.

Additionally, USD Coin (USDC) deposits climbed 19.8%, while Tether (USDT) deposits declined 13.4%. This shift follows moves by European crypto exchanges to delist Tether in order to comply with Markets in Crypto-Assets (MiCA) regulations.

Xapo Bank’s self-selected poll on X showed respondents favored using Bitcoin for savings and investment. Source: Xapo Bank

Bitcoin Banking and Lending Innovation

Xapo Bank, which in 2025 became the first licensed bank in the UK to offer interest-bearing Bitcoin and fiat accounts, continued to innovate during the quarter. In March, the bank launched Bitcoin-backed U.S. dollar loans of up to $1 million, giving clients new options for liquidity without needing to sell their BTC holdings.

Xapo Bank’s head of investment, Gadi Chait, noted that short-term price movements haven’t dampened the bank’s long-term outlook for Bitcoin.

“While global events painted an erratic picture, the opportunity for Bitcoin has always been in its long-term performance, not its short-term volatility,” he said.

Bitget Sees Parallel Growth Amid Volatility

Market turbulence also drove significant gains at digital asset exchange Bitget, which reported a sharp rise in trading activity in its Q1 2025 Transparency Report. The platform saw total trading volume reach $2.1 trillion, with spot trading volume up 159% quarter-on-quarter to $387 billion.

Bitget’s user base also expanded rapidly, adding 4.89 million users to its centralized exchange and 15 million users to its Bitget Wallet app. The exchange now boasts over 120 million global users.

Gracy Chen, CEO of Bitget, said the company is focused on expanding its institutional-grade infrastructure and Web3 ecosystem.

“We’re doubling down on building a comprehensive Web3 presence and strengthening our user experience,” she said.

In a show of industry solidarity, Bitget lent 40,000 ETH (worth approximately $100 million) to rival exchange Bybit in February, following a major hack. The loan was interest-free and uncollateralized, and has since been fully repaid.

“It was simply about supporting a peer in need,” Chen added.

Outlook: Confidence Remains Strong

Both Xapo Bank and Bitget’s Q1 performance underscores growing institutional confidence in Bitcoin and digital assets — even amid short-term volatility. As financial markets face ongoing uncertainty, long-term investors appear increasingly focused on accumulating strategic positions in decentralized assets like Bitcoin.