Reports have revealed that institutional investors are shifting their focus towards ethereum, showing a preference against the largest cryptocurrency, bitcoin. Despite the recent rebound to over $55,000ethereum's unique features and potential development capabilities continue to capture the interest of institutional players.
Institutions favor ethereum over bitcoin
On February 24, the cryptocurrency exchange, Bybit, published a research report on the asset allocation of its users. The research examined investors' trading and hodling behaviors, spanning the period from July 2023 to January 2024. The Bybit report also provided valuable insights into investors' asset allocation in cryptocurrencies such as alternative currencies, stablecoins and coins memesshedding light on the specific coins that users are currently bullish or bearish on.
According to the research report, ethereum unexpectedly emerged as the top cryptocurrency choice for institutional investors. The report revealed that “institutions are betting big on ethereum.” ethereum-exits-bitcoin-stellar-performance/” rel=”nofollow”>allocating more funds to eth compared to btc.
Bybit has revealed that the recent surge in interest in ethereum began in September 2023, when eth was still trading around $2,000. Subsequently, ethereum market sentiment became more bullishexperiencing a surge in investor interest to approximately 40% by January 2024. The crypto exchange has confirmed that as of January 31, eth has become the largest cryptocurrency held by institutions.
The Bybit report also revealed that institutional investors bitcoin-exodus-are-investors-selling-btc-in-favor-of-etfs/” rel=”nofollow”>Interest in bitcoin began to wane. following the United States Securities and Exchange Commission (SEC) bitcoin-etfs-approved-by-us-sec/” rel=”nofollow”>approval of bitcoin Spot ETFs on January 10, 2024. At that time, bitcoin had experienced enormous selling pressures, leading investors to trim their btc holdings in favor of other cryptocurrencies.
He ethereum overallocation It is reportedly attributed to investors anticipating a favorable outcome from the upcoming ethereum launch. ethereum-dencun-upgrade/” rel=”nofollow”>Decun Updatewhose launch is scheduled for March 2024.
Notably, Bybit has revealed that it is still being determined whether the recent move to ethereum is a short-term move or a longer move. However, the approach Halving bitcoin in April potentially adds a layer of downside risks, as bitcoin-halving-crypto-fund-148000-target/” rel=”nofollow”>projections indicate the significant rise in bitcoin value to new all-time highs during the halving phase.
<img decoding="async" class="aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/02/Ethereum-Outperforms-Bitcoin-as-Institutional-Investors-Clamor-for-ETH-Exposure" alt="Tradingview.com ethereum Price Chart (bitcoin)” width=”3286″ height=”1530″ loading=”lazy”/>
eth price rises to $3,230 | Source: ETHUSD on Tradingview.com
Retail investors think otherwise
The Bybit research report also examines the asset allocation trend for retail investors on the cryptocurrency exchange. The report revealed that retail investors are significantly more ethereum–eth-costs-says-bitcoin-advocate/” rel=”nofollow”>more bullish on bitcoin than ethereumallocating more funds to btc than eth despite ethereum's recent rise in value.
Over the past week, ethereum has experienced a substantial increase in its price, jumping more than 7% and outperforming bitcoin, suggesting potential for further upward trajectory. At the time of writing, ethereum is trading at $3,227, reflecting a 4.05% increase in the last 24 hours, according to CoinMarketCap.
While The massive ethereum rally has successfully lifted sentiment among institutional investors, retail investors remain less influenced and choose to hold or add additional investments. bitcoin in its diversified portfolio of digital assets.
Featured image from Cointribune, chart from Tradingview.com
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