Bybit Research reveals institutions’ lack of interest in altcoins, prioritizing Bitcoin allocations
Institutional investors seem uninterested in altcoins, with data from Bybit Research revealing that half of their portfolio is allocated to Bitcoin.
According to the latest data from Bybit Research, institutions are more drawn to Bitcoin (BTC) than Ethereum (ETH) or other altcoins. The report indicates that institutional investors increased their Bitcoin holdings during the first three quarters of 2023, which sets them apart from other users.
The prevailing positive market sentiment towards Bitcoin can be attributed to “favorable lawsuit outcomes,” as the market expects favorable results for spot Bitcoin exchange-traded funds (ETFs), analysts say. Meanwhile, retail traders exhibit the lowest holding percentage in Bitcoin compared to institutions, potentially due to their higher leverage levels.
Since September 2023, institutions have also started gradually allocating their funds to Ethereum. However, analysts believe this surge in activity may be due to institutions’ general positive sentiment towards cryptocurrencies, as VIP and retail traders show little interest in Ethereum since the Shanghai upgrade, also known as “Shapella.”
Bybit generated the research report based on data from its active user base from December 2022 to September 2023. VIP traders are defined as investors with a holding portfolio worth more than $50,000.
Meanwhile, industry executives in the crypto space have declared the beginning of a new bull run, with many predicting new all-time highs for Bitcoin above $100,000 in 2024. Pascal Gauthier, CEO of Ledger, expressed his optimism for the coming years, stating that 2023 was a year of preparation for growth and that the sentiment for 2024 and 2025 is very encouraging.
