Institutional Investors Show Little Interest in Altcoins, Favor Bitcoin Allocation
Institutional investors are primarily focused on Bitcoin (BTC) rather than Ethereum (ETH) or other altcoins, according to data from Bybit Research. The research shows that during the initial three quarters of 2023, institutional investors increased their allocation to Bitcoin, setting them apart from other users. In September, half of INS’s asset portfolio was allocated to BTC. This preference for Bitcoin may be attributed to positive market sentiment driven by favorable lawsuit outcomes and expectations for spot Bitcoin exchange-traded funds (ETFs). On the other hand, retail traders exhibit the lowest holding percentage in BTC compared to institutions due to higher leverage levels.
Institutions Slowly Allocating Funds to Ethereum
While institutions have shown interest in Bitcoin, there has also been a slow increase in their allocation to Ethereum since September 2023. Analysts suggest that this surge may be driven by institutions’ overall positive sentiment toward cryptocurrencies. However, VIP and retail traders have demonstrated a lack of interest in Ethereum following the Shanghai upgrade. Bybit Research generated this data based on 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.
New Bull Run Predicted for Bitcoin
Industry executives predict the start of a new bull run for Bitcoin, with expectations of reaching new all-time highs above $100,000 in 2024. Pascal Gauthier, CEO of Ledger, stated that 2023 was a year of preparation for future growth and expressed an optimistic outlook for 2024 and 2025.
Hot Take: Institutional Investors Favor Bitcoin Over Altcoins
Institutional investors continue to prioritize Bitcoin over altcoins, as indicated by the increase in Bitcoin allocation during the initial three quarters of 2023. This preference can be attributed to positive market sentiment and expectations for favorable outcomes in Bitcoin-related lawsuits. Retail traders, on the other hand, exhibit lower holding percentages in BTC due to higher leverage levels. While institutions have also started allocating funds to Ethereum, VIP and retail traders show a lack of interest in the altcoin. Overall, industry experts predict a new bull run for Bitcoin, with potential all-time highs above $100,000 in 2024.
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