Ethereum outperforms Bitcoin as institutional investors demand ETH exposure.
The report shows that institutional investors are shifting their attention to other areas. Ethereum, indicating its preference compared to the largest cryptocurrency, Bitcoin. Despite the recent launch of Bitcoin Rises above $55,000Ethereum’s unique features and potential development capabilities continue to attract the attention of institutional players.
Institutions Prefer Ethereum Over Bitcoin
On February 24th, cryptocurrency exchange Bybit published This is a research report on user asset allocation. The study examined investors’ holding and trading behavior from July 2023 to January 2024. Bybit’s report also provided valuable insights into investors’ asset allocation across cryptocurrencies, including: altcoin, stablecoin and meme coinIt highlights specific coins that users are currently bullish or bearish on.
Ethereum has unexpectedly emerged as the leading cryptocurrency choice for institutional investors, according to a research report. “Institutions are investing heavily in Ethereum,” the report said. Allocate more funds to ETH compared to BTC.
Bybit said the recent rise in interest in Ethereum began in September 2023, when ETH was still trading around $2,000. Since then, market sentiment for Ethereum has improved. optimisticBy January 2024, investor interest had surged by approximately 40%. The cryptocurrency exchange confirmed that as of January 31, ETH has become the single largest cryptocurrency held by the institution.
Bybit’s report found that institutional investors Interest in Bitcoin is starting to wane. According to the U.S. Securities and Exchange Commission (SEC) Spot Bitcoin ETF Approved January 10, 2024. At the time, Bitcoin was experiencing tremendous selling pressure, which resulted in investors reducing their BTC holdings in favor of other cryptocurrencies.
that much Ethereum’s over-allocation This is reportedly due to investors expecting positive results from Ethereum in the future. Decoon UpgradeScheduled for release in March 2024.
Notably, Bybit recently stated that it is still determining whether the switch to Ethereum will be a short-term or longer-term measure. but coming bitcoin halving April could potentially add some bearish risk. projection This indicates that the value of Bitcoin rose significantly during the halving phase to an all-time high.
ETH price rises to $3,230 | Source: ETHUSD on Tradingview.com
Retail Investors Think Differently
Bybit’s research report also examines asset allocation trends for retail investors on cryptocurrency exchanges. Retail investors are much more numerous, according to the report. Bitcoin is stronger than EthereumDespite Ethereum’s recent surge in value, I have more funds allocated to BTC than ETH.
Over the past week, Ethereum has Had quite a bit of hiking experience In price, it jumps more than 7% and surpasses Bitcoin, suggesting broader potential. upward trajectory. As of this writing, Ethereum is trading at $3,227, up 4.05% in the last 24 hours, according to CoinMarketCap.
while Ethereum Massive Rally It successfully boosted sentiment among institutional investors, with retail investors remaining unperturbed and opting to hold or consolidate additional assets. bitcoin Added to our diverse portfolio of digital assets.
Featured image from Cointribune, chart from Tradingview.com
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