Institutional investors are heavily allocating their portfolios toward Ether, followed closely by Bitcoin, while retail investors are focusing more on the flagship cryptocurrency and holding a wider variety of altcoins, according to a report from Bybit.
The report, based on surveys with traders on the exchange, indicates that institutions have increased their concentration in BTC and ETH to 80% of their cryptocurrency holdings.
This shift towards ETH is attributed to the anticipated Dencun upgrade, which is expected to further enhance the network’s efficiency and scalability. Ether has also outperformed Bitcoin so far this year after a 33% year-to-date rally.
This trend marks a change from December 2023, when Bybit’s previous report showed that institutions were favoring Bitcoin while remaining cautious about Ether. Institutions were at the time allocating their ETH and altcoin holdings into Bitcoin, in anticipation of the approval of spot Bitcoin ETFs in the US.
Bybit also observed a significant decrease in institutional interest in altcoins, particularly in volatile categories like memecoins, AI tokens, and BRC-20 tokens. Instead, institutions are focusing on more stable assets like layer-1 tokens and decentralized finance (DeFi) protocols.
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/feb/27/
