Institutional Investors Prefer Bitcoin, Ether Over Altcoins — Here's Why
Portfolio Pulse from Murtuza Merchant
Institutional investors have shown a preference for Bitcoin (BTC) and Ethereum (ETH) over altcoins, with Bitcoin holdings increasing significantly in the first three quarters of 2023. In September, 50% of institutional investors' portfolios were in Bitcoin, influenced by positive market sentiment and potential regulatory approvals. Ether saw a decline in interest post-Shapella update, but institutional holdings surged in September. Retail traders hold more stablecoins, while institutions strategically move stablecoin reserves into BTC and ETH. Interest in altcoins has waned among all traders, with holdings dropping below December levels.
December 04, 2023 | 5:17 pm
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POSITIVE IMPACT
Institutional investors have significantly increased their holdings in Bitcoin throughout 2023, with 50% of their portfolios allocated to BTC in September, driven by positive market sentiment and regulatory developments.
The increase in institutional holdings of Bitcoin, especially the 50% portfolio allocation in September, indicates strong institutional confidence in Bitcoin. This could lead to a positive short-term impact on BTC's price as institutional investments are typically seen as a bullish signal.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Despite a decline in interest from most trader categories post-Shapella update, Ethereum saw an unusual surge in institutional holdings in September, suggesting a broader optimistic sentiment among institutional investors.
The surge in institutional holdings of Ether in September, despite the overall decline in interest, suggests that institutions may be seeing long-term value in ETH. This could have a positive short-term impact on ETH's price as institutional actions often influence market sentiment.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70