Ethereum Outperforms Bitcoin As Institutional Investors Clamor For ETH Exposure
February 27 2024 - 5:45AM
NEWSBTC
Reports have revealed that institutional investors are shifting
their focus to Ethereum, displaying a preference compared to the
largest cryptocurrency, Bitcoin. Despite Bitcoin’s recent rally to
over $55,000, Ethereum’s unique features and potential
developmental capabilities continue to capture institutional
players’ interest. Institutions Favor Ethereum Over Bitcoin
On February 24, cryptocurrency exchange, Bybit, published a
research report on its users’ asset allocation. The research
examined investors’ hodling and trading behaviours, covering the
period from July 2023 to January 2024. Bybit’s report also provided
valuable insights into investors’ asset allocation across
cryptocurrencies such as altcoins, stablecoins and meme coins,
shedding light on the specific coins users are currently bullish or
bearish on. Related Reading: VeChain Ready For
Blast-Off: Crypto Analyst Predicts VET Price To Rally 14,600%
According to the research report, Ethereum has unexpectedly emerged
as the primary cryptocurrency choice for institutional investors.
The report revealed that “institutions are betting big on
Ethereum,” allocating more of their funds to ETH compared to
BTC. Bybit has disclosed that the recent rise in interest in
Ethereum began in September 2023, when ETH was still trading around
$2,000. Subsequently, Ethereum’s market sentiment became more
bullish, experiencing a surge in investor interest to about 40% by
January 2024. The crypto exchange has confirmed that, as of January
31, ETH has become the single largest cryptocurrency held by
institutions. Bybit’s report also revealed that institutional
investors’ interest in Bitcoin began to wane following the United
States Securities and Exchange Commission (SEC) approval of Spot
Bitcoin ETFs on January 10, 2024. At the time, Bitcoin had
experienced massive selling pressures, resulting in investors
trimming their BTC holdings to favour other cryptocurrencies.
The excessive allocation of Ethereum is reportedly attributed to
investors anticipating a favourable outcome from Ethereum’s
upcoming Decun Upgrade, slated to launch in March 2024.
Notably, Bybit has disclosed that it is still being determined if
the recent shift to Ethereum is a short-term manoeuvre or a more
prolonged move. However, the approaching Bitcoin halving in April
potentially adds a layer of bearish risks, as projections indicate
Bitcoin’s significant rise in value to new all-time highs during
the halving phase. ETH price rises to $3,230 | Source: ETHUSD
on Tradingview.com Retail Investors Think Otherwise Bybit’s
research report also examines the asset allocation trend for retail
investors on the cryptocurrency exchange. The report revealed that
retail investors are significantly more bullish on Bitcoin than
Ethereum, allocating more funds into BTC than ETH despite
Ethereum’s recent surge in value. Related Reading: Crypto
Analyst Predicts Dogecoin Parabolic Breakout Above $3.5, Here’s
When Over the past week, Ethereum has experienced a substantial
hike in its price, jumping over 7% and outpacing Bitcoin,
suggesting a potential for a more extensive upward trajectory. At
the time of writing, Ethereum is trading at $3,227, reflecting a
4.05% increase in the last 24 hours, according to
CoinMarketCap. While Ethereum’s massive rally has
successfully elevated the sentiment among institutional investors,
retail investors remain less swayed, opting to hold onto or
incorporate additional Bitcoin into their diversified portfolio of
digital assets. Featured image from Cointribune, chart from
Tradingview.com
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