According to data from Bybit Research, it seems that institutional investors are not keen on altcoins. Reportedly, half of their portfolios are invested in Bitcoin, indicating a strong preference for the leading cryptocurrency over alternative digital assets.
New data from Bybit Research suggests that institutional interest is leaning heavily towards Bitcoin (BTC) rather than Ethereum (ETH) or other alternative coins (altcoins). The findings highlight a clear preference among institutions for Bitcoin over other cryptocurrencies.
Bitcoin price vs Bitcoin holding % by INS, VIP and retail traders | Source: Bybit Research
Institutional Bitcoin Holdings Rise Amidst 2023 Crypto Market Volatility
Amidst the extreme volatility experienced in the crypto markets throughout 2022, institutional investors have notably increased their Bitcoin holdings in the initial three quarters of 2023. According to a report, this trend stands out as “distinct from that of other users.”
A noteworthy observation from Bybit Research reveals that by September, half of the institutional asset portfolio was allocated to Bitcoin (BTC). Analysts attribute the positive market sentiment towards Bitcoin to the anticipation of favorable outcomes in lawsuits, especially concerning the potential approval of spot Bitcoin exchange-traded funds (ETFs).
Ethereum price vs Ethereum holding % by INS, VIP and retail traders | Source: Bybit Research
Interestingly, retail traders exhibit the lowest percentage of holdings in BTC compared to institutions. Bybit suggests that this difference could be linked to the comparatively higher leverage levels employed by retail traders.
Institutions Show Growing Interest in Ethereum Amidst Upbeat Crypto Sentiment
Recent data indicates a gradual shift in institutional funds towards Ethereum since September 2023, contrasting with the lack of interest shown by VIP and retail traders post the Shanghai upgrade (also known as “Shapella”). Analysts speculate that institutions’ increased activity might stem from their “general upbeat sentiment toward crypto.”
Bybit Research compiled the research report based on data from its active user base spanning from December 2022 to September 2023. VIP traders, defined as investors holding portfolios worth more than $50,000, were included in the analysis.
Concurrently, leaders in the crypto industry are proclaiming the initiation of a new bull run. Pascal Gauthier, CEO of Ledger, highlighted in a CNBC interview that 2023 was a preparatory year for anticipated growth. Gauthier expressed strong optimism for 2024 and 2025, characterizing the sentiment as “very encouraging.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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