Institutional investors shift focus from stablecoins to BTC and ETH – Bybit research
Institutional investors shift focus from stablecoins to BTC and ETH – Bybit research
A recent report from Bybit highlights a shift in the crypto landscape, with investors reducing their exposure to stablecoins while increasing their investments in Bitcoin (BTC) and Ethereum (ETH).
The Q2 Asset Allocation report, which covers the period from December 2023 to May 2024, reveals a notable trend where both institutional and retail investors are moving away from stablecoins, which have been a staple in the crypto market for their price stability. Instead, they are focusing more on Bitcoin and Ethereum, according to PR Newswire.
As of May 2024, BTC is still the largest single asset held by all users, making up 26% of their total assets in this top cryptocurrency.
The research also shows that the number of people holding stablecoins is falling. In December, 50.2% of users held stablecoins, but by May this had fallen to 42.8%. If we exclude stablecoins, 61% of users' crypto investments are shared between BTC and ETH.
Like institutions, retail traders still prefer BTC over ETH, even though there is new optimism for ETH spot ETFs. However, institutional holdings of BTC and ETH (39.4%) are more concentrated than retail holdings (20.9%).
The report underscores a trend where the crypto market is evolving, with major investors betting on the established cryptos rather than the traditionally stable assets.
"As a leading crypto exchange in the industry, Bybit continues to solidify its position as the preferred partner for institutions seeking a reliable and robust trading platform," commented Eugene Cheung, Head of Institutions at Bybit.
The increasing concentration on BTC and ETH could herald a new phase in the cryptocurrency market, characterized by greater mainstream adoption and institutional involvement.
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