Insights into Institutional Traders’ Sentiment and Asset Allocation
A recent report from Bybit Research provides insights into the sentiment and asset allocation of institutional traders in the cryptocurrency market during the first three quarters of 2023.
The report focuses on the asset allocation strategies of institutions, VIPs, and retail traders, highlighting their preferences amidst the volatile market conditions since December 2022.
Institutions Prefer Bitcoin Over Altcoins
The findings reveal that institutions have a strong preference for Bitcoin, with approximately half of their portfolio allocated to this cryptocurrency. Institutions have increased their Bitcoin holdings during the volatile market conditions of 2023, which sets them apart from other user groups.
Institutional Traders’ Skepticism Towards Altcoins
Institutional traders show skepticism towards altcoins and favor Bitcoin and Ethereum. They allocate 45% of their assets to stablecoins, 50% to Bitcoin and Ethereum, and only 5% to altcoins. This caution towards altcoins is driven by concerns about their volatility.
Positive Sentiment Towards Bitcoin
Institutional traders remain bullish on Bitcoin and have mixed sentiments regarding Ethereum. Despite a decline in Ether holdings, there was a surge in institutional traders’ Ether holdings in September, coinciding with positive market sentiment driven by excitement over ETF news.
Hot Take: Institutional Traders Split Between Bitcoin and Ether, Skeptical of Altcoins
A recent report from Bybit Research reveals that institutional traders in the cryptocurrency market are split between Bitcoin and Ether while remaining skeptical of altcoins. Institutions have shown a strong preference for Bitcoin, allocating approximately half of their portfolio to this cryptocurrency. This bullish stance is driven by positive market sentiment and the anticipation of the SEC approving a spot Bitcoin ETF.
On the other hand, institutions display skepticism towards altcoins, with only 5% of their assets allocated to these alternative cryptocurrencies. This caution is due to concerns about the volatility of altcoins.
While institutional traders remain bullish on Bitcoin, their sentiment towards Ether is mixed. Despite a decline in Ether holdings, there was a surge in institutional traders’ Ether holdings in September, coinciding with positive market sentiment driven by ETF news.
Overall, this research highlights the differentiated approaches and preferences of institutional traders in the cryptocurrency market, shedding light on their asset allocation strategies and sentiment towards different cryptocurrencies.
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