Institutional Traders Split Between Bitcoin and Ether, Skeptical of Altcoins: Bybit Research
A recent report from Bybit Research reveals insights into the sentiment and asset allocation of institutional traders in the cryptocurrency market during the first three quarters of 2023.
The Bybit Research report delves into the asset allocation strategies of different cohorts, namely institutions, VIPs, and retail traders, amidst the volatile market environment since December 2022.
The findings reveal that institutions are displaying a strong preference for Bitcoin (BTC) over Ethereum (ETH) or altcoins, with approximately half of their portfolio allocated to Bitcoin. Notably, institutions increased their Bitcoin holdings during the volatile market conditions of 2023, a trend distinct from other user groups.
Institutional traders nearly doubled their Bitcoin holdings during the initial three quarters of 2023, and as of September, around 50% of their assets were denominated in Bitcoin. The report attributes this bullish stance to positive market sentiment and the anticipation of the U.S. Securities and Exchange Commission (SEC) approving a spot Bitcoin exchange-traded fund (ETF).
On the other hand, retail traders exhibited lower Bitcoin holdings, potentially influenced by higher leverage levels in their trading activities. The report provides insights into the differentiated approaches and preferences of various market participants amid the dynamic cryptocurrency landscape.
The report from Bybit Research sheds light on the asset allocation strategies of institutional traders and large Bitcoin holders (whales) in the cryptocurrency market. The findings reveal a general decline in altcoin holdings among traders, with a noticeable decrease starting in August.
Institutional traders adopted a cautious stance, with their asset
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