Changes in Institutional Investors' Portfolio Preferences and Strategies - Latest cryptocurrency news

Changes in Institutional Investors’ Portfolio Preferences and Strategies

A report published by the cryptocurrency exchange Bybit sheds light on institutional investors’ portfolio preferences and strategic moves. The report emphasizes a significant change in asset distribution, particularly in <a href="”>Bitcoin and Ethereum, highlighting how institutional investors’ perception of the market has changed.

Throughout the research, institutional investors have maintained diversified crypto portfolios. Specifically, 45% of their portfolios are held in stablecoins, 50% strategically allocated to dominant cryptocurrencies like Bitcoin and Ethereum, and the remaining 5% distributed among altcoins. This balanced distribution reflects institutional investors’ cautious yet opportunistic approaches.

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In the first quarter of 2023, there has been a noticeable increase in institutional investors’ Bitcoin holdings. In line with the overall positive market sentiment towards Bitcoin in September, institutions allocated 50% of their portfolios to BTC. This increase can be attributed to positive developments in legal battles and the expectation of approval for a spot Bitcoin ETF by the SEC.

At the beginning of the year, Ethereum’s share increased due to the anticipation of the Shapella update in April. However, after Shapella, there has been a slight decrease in institutional investors’ Ethereum ownership, which is considered a sign of a clear positive sentiment towards crypto assets.

There is a clear distinction between institutional and individual investors in terms of stablecoin dynamics. Individual investors consistently hold the highest percentage in stablecoins due to leverage applications. On the other hand, institutional investors have shown a decrease in stablecoin percentages during bullish markets and an increase during bearish markets, demonstrating their expertise in market timing.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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