Join Our Telegram channel to stay up to date on breaking news coverage
Institutional traders have increased their Bitcoin (BTC) and Ether (ETH) holdings this year but remain largely skeptical about alternative cryptocurrencies, according to Bybit research.
The research shows that institutional traders have 45% of their crypto assets in stablecoins, 50% in Bitcoin and Ether, and 5% in altcoins.
“Flight to safer assets in a bear market might explain this risk-averse asset allocation from traders,” the research says.
Traders nearly doubled their BTC holdings during the first three quarters of 2023. In September, 50% of the crypto portfolio held by institutional traders was in Bitcoin.
This trading behavior stems from positive market sentiment toward BTC amid the potential approval of a spot Bitcoin exchange-traded fund (ETF).
Institutional traders also started accumulating Ether in September, the report says, amid upbeat sentiment caused by ETF news.
On the other hand, the percentage of assets allocated by institutions to altcoins has recorded a significant drop.
Retail Traders Reduce Bitcoin Holdings on Higher Leverage Levels
In contrast, retail traders have reduced their BTC holdings, with researchers attributing it to “higher leverage levels.”
Retail traders have the highest stablecoin holdings. But institutions are reducing their stablecoin holdings and investing in BTC and ETH, signaling growing optimism towards the crypto market.
Also Read
- Bitcoin Price Prediction: BTC Crashes Through $41K Barrier After 11% Surge That Underscores The Massive Potential Of This BTC Cloud Mining Platform
- Lawmaker Tom Emmer Slams US Treasury Department Following Crypto Crackdown Proposal, Says It Wants ”Surveillance State”
- Grayscale Bitcoin Trust Discount Shrinking And Investors Back New Bitcoin ETF Token With $2M As Sellout Nears And SEC Approval Bets Mount
Most Searched Crypto Launch - Pepe Unchained
- Layer 2 Meme Coin Ecosystem
- Featured in Cointelegraph
- SolidProof & Coinsult Audited
- Staking Rewards - pepeunchained.com
- $10+ Million Raised at ICO - Ends Soon
Join Our Telegram channel to stay up to date on breaking news coverage
