Bitcoin (BTC) is becoming increasingly popular among institutional investors. This emerges from a study by the crypto exchange ByBit. The expectations of a place are particularly high exchange traded fund (ETF) seems to be getting closer. Other altcoins such as Ethereum (ETH) are significantly less popular.
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Preference for Bitcoin
ByBit’s report shows that institutional investors doubled their BTC holdings in the last three quarters of 2023. By September 2023, half of institutional traders’ assets were made up of Bitcoin. After a period when the market was very bearish During the FTX exchange crash, there was a revival after major asset managers such as BlackRock joined the American exchange Securities and Exchange Commission (SEC) have been knocking on the door for an ETF application.
Interestingly, the report shows that retail traders hold a smaller proportion of their holdings in BTC. This is no surprise, as individual investors often do not have the same resources or access to information as institutional traders.
Another important factor for the mentioned difference is the higher leverage. Retail investors are often willing to take on more risk and use higher leverage to make quick profits. This can also make them more vulnerable to large losses, especially in volatile markets like cryptocurrencies.
Institutional doubts about altcoins
Generally, institutional traders and whales Skeptical of altcoins. A general decline in altcoin ownership among traders can be observed, especially from August onwards. This suggests a cautious stance towards these more volatile assets. For example, this group’s Ethereum holdings have generally declined since the Shapella upgrade, with the exception of a spike among institutional traders in September due to a positive crypto market and ETF news.
Overall, the institutional investors’ strategy appears to be working. The price of Bitcoin is up about 140 percent this year, while ETH is up 87 percent.
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