The list of hedge funds breaking into the crypto market continues to grow, and it appears that Coinbase is winning a significant share of their business, according to the company's second-quarter earnings release.
Coinbase, which operates an array of business lines that cover both institutional and retail clients, reported $2 billion in net revenue for the second quarter of the year, smashing Wall Street's expectations.
The company also appears to be cozying up to the hedge fund world. Coinbase said Tuesday said that 10 out of the top 100 hedge funds by assets under management are customers of the exchange.
"Adoption continued at a rapid pace throughout the quarter despite market volatility," Coinbase said. "We are encouraged by the progress we made over the past year as we build our institutional suite of products and service offerings."
"In recent months, we have formed partnerships with industry leaders including Elon Musk, PNC Bank, SpaceX, Tesla, Third Point, and WisdomTree."
This is the firm time Coinbase has made public mention of its relationship with Tesla. The Block first reported in February that Coinbase was behind the electronic car maker's headline-driving bitcoin purchase.
Hedge funds have been warming up to the space. Point72, which has been looking for its own crypto unit head, made its first crypto venture bet last week, backing Messari's $21 million raise. A source close to Point72 told The Block that it is also looking to hire a crypto lead.