Share this article
Institutional Traders Split Between Bitcoin, Ether: Bybit Research
Numbers from the exchange show institutional traders largely ignored alternative cryptocurrencies in favor of perceived "safe" assets.
Updated Mar 8, 2024, 5:56 p.m. Published Dec 4, 2023, 9:13 a.m.
Make us preferred on Google
Institutional traders are bullish on bitcoin, mixed on ether and skeptical of altcoins, a new report from Bybit Research shows.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
During the first three quarters of 2023, institutional traders nearly doubled their holdings of bitcoin [BTC]. As of Setpember, half their assets were denominated in the largest cryptocurrency, driven by positive market sentiment and anticipation of the Securities and Exchange Commission (SEC) approving a spot BTC exchange-traded fund (ETF) in the U.S. Their stance contrasts with the lower BTC holdings of retail traders, possibly due to their higher leverage levels, Bybit's research shows.
Institutional traders and whales, or large holders of bitcoin, were skeptical about altcoins, the report says, with the data showing a general decline in altcoin holdings among traders despite a brief rise in May. A notable decrease started in August, particularly among institutions, reflecting a cautious stance towards these more volatile assets.
Ether [ETH] holdings have generally declined since the Ethereum blockchain's Shapella upgrade, data shows, except for a surge among institutional traders in September amid a positive crypto outlook as ETF news excited markets.
The bitcoin price is up about 140% year-to-date, while ether has risen 87%.
In a report from October, K33 Research wrote that it was shifting stance on asset allocation, advising a pivot back to bitcoin due to ether's prolonged slump against BTC since July 2022, and a muted response to the newly launched futures-based ETH ETFs.
"We believe it’s time to pull the brakes on ETH and rotate back into BTC amid ether's ongoing underperformance," they wrote.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
How a 'perpetual’ stock trick could solve Michael Saylor’s $8 billion debt problem
The bitcoin treasury firm is using perpetual preferreds to retire convertibles, offering a potential framework for managing long-dated leverage.
What to know:
- Strive upsized its SATA follow on offering beyond $150 million, pricing the perpetual preferred at $90.
- The structure offers a blueprint for replacing fixed maturity convertibles with perpetual equity capital that removes refinancing risk.
- Strategy has a $3 billion convertible tranche due in June 2028 with a $672.40 conversion price, which could be addressed using a similar preferred equity approach.
Top Stories
