After the widely publicized collapse of the Silicon Valley Bank (SVB), accompanied by two other major banking institutions crashing and more at risk, investors seem to be increasingly flocking to the alternative solution – cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

As evident from the declining portion of Bitcoin and Ethereum reserves on crypto exchanges, investors are seeking refuge in these digital assets out of fear that the banking crisis could spread to crypto businesses, as noted by blockchain and financial analysis platform Glassnode in a weekly newsletter sent out on March 13.

Specifically, the report stated that around “0.144% of all BTC and 0.325% of all ETH in circulation was withdrawn from exchange reserves, demonstrating a similar self-custody response pattern” to the collapse of the crypto trading platform FTX.

(By Ana Nicenko)