Institutional investors apparently have no interest in altcoins as data from Bybit Research show half of institutionalโs portfolio is allocated to Bitcoin.
Institutions are more interested in Bitcoin (BTC), than Ethereum (ETH) or altcoins, according to a new data from Bybit Research.
As crypto markets have experienced extreme volatility in 2022, institutional investors increased their Bitcoin holdings during the initial three quarters of 2023, a pattern โdistinct from that of other users,โ the report says.
โOf particular interest is the fact that, in September, half of INSโs asset portfolio was allocated to BTC.โ
Bybit Research
As per analysts, the prevailing positive market sentiment toward Bitcoin can be attributed to โfavorable lawsuit outcomes,โ as the market anticipates good outcome for spot Bitcoin exchange-traded funds (ETFs). However, retail traders in the meantime โexhibit the lowest holding percentage in BTCโ compared to institutions, which might be due to their โcomparatively higher leverage levels,โ Bybit suggests.
It appears institutions have also started slowly allocating their funds to Ethereum since Sept. 2023, but analysts think this surge of activity may have to do with institutionsโ โgeneral upbeat sentiment toward cryptoโ as VIP and retail traders are demonstrating lack of interest in Ethereum since the Shanghai upgrade (also known as โShapellaโ).
For the research report, Bybit generated data based on its active users base from Dec. 2022 โ Sept. 2023. VIP traders are said to be investors with holding portfolio worth more than $50,000.
Meanwhile, crypto industry executives have declared the start of a new bull run, with more voices calling for new all-time highs for Bitcoin above $100,000 in 2024. For instance, Pascal Gauthier, CEO of Ledger, noted in an interview with CNBC that 2023 was a year of preparation for the growth ahead, adding that the sentiment for 2024 and 2025 is โvery encouraging.โ
