- Institutional investors doubled Bitcoin holdings in first three quarters of 2023.
- Investors cautious about altcoins, with significant drop in institutional holdings in August.
- Bitcoin outperforms Ether with a 140% rise in price this year.
Recent information from Bybit Research indicates that institutional investors hold reservations regarding altcoins, possess ambivalent attitudes towards ether, and maintain a favorable outlook on bitcoin. During the initial three quarters of 2023, institutional investors increased their holdings of Bitcoin
The optimistic sentiment in the market and the anticipation of the U.S. Securities and Exchange Commission sanctioning a spot Bitcoin ETF in September led them to hold half of their assets in Bitcoin. This is a significant deviation from the more modest Bitcoin investments of typical traders, a difference that Bybit ascribes to the higher leverage levels utilized by these traders.
Bitcoin’s Market Edge Over Altcoins
The study indicates that large-scale traders and major investors, often called “whales,” have shown caution towards alternative cryptocurrencies. Although there was a brief increase in interest in May, the trend in the data suggests a consistent reduction in the amount of altcoins held by traders. A significant drop in holdings was observed in August, particularly within institutional circles, suggesting a cautious approach to these more volatile investments.
Data indicates that Ethereum
In an October report, K33 Research indicated a shift in its stance on asset allocation, advocating for a renewed focus on bitcoin due to the prolonged downturn of ether relative to BTC since July 2022 and the tepid response to the newly launched ETH ETFs that are futures-based.
Bitcoin’s price has risen nearly 140% this year, outpacing ether’s 87% gain. Bitcoin is currently valued at $41,573, representing a 5.42% increase over the past 24 hours, according to the latest figures from CoinMarketCap.
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