Bybit Research finds institutions favor Bitcoin over altcoins for their investment allocations

Bybit Research data reveals that institutional investors are showing a lack of interest in altcoins, with half of their portfolio being allocated to Bitcoin.
Institutions are focusing more on Bitcoin (
BTC
) than Ethereum (
ETH
) or other alternative cryptocurrencies, according to recent findings from Bybit Research.
The report highlights that institutional investors have been increasing their Bitcoin holdings in the face of extreme market volatility in 2022, a trend that sets them apart from other user groups.
Analysts attribute the positive market sentiment towards Bitcoin to favorable lawsuit outcomes and the anticipation of positive results for spot Bitcoin exchange-traded funds (ETFs). In contrast, retail traders are holding the lowest percentage of BTC, possibly due to their higher leverage levels, as suggested by Bybit.
While institutions have begun slowly diversifying their funds into Ethereum since September 2023, VIP and retail traders seem to be less interested in Ethereum following the Shanghai upgrade, also known as “Shapella.”
Based on data collected from active users between December 2022 and September 2023, Bybit classifies VIP traders as investors with portfolios exceeding $50,000.
Industry leaders are predicting a new bull run, with some projecting Bitcoin to reach new all-time highs above $100,000 in 2024. Pascal Gauthier, CEO of Ledger, expressed optimism for the years ahead during an interview with CNBC, stating that 2023 was a year of preparation for significant growth in 2024 and 2025.
As the market heats up, investors are eagerly anticipating the presale of a Dogecoin competitor, signaling expectations of a price surge in the near future.