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
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Meta and Microsoft continue going big on AI Spending. Here's how bitcoin miners could benefit
In its fourth quarter earnings report, Meta said capital spending plans for 2026 should be in the range of $115-$135 billion, well ahead of consensus forecasts.
What to know:
- Fourth-quarter earnings results from Microsoft (MSFT) and Meta (META) suggested no slowdown in AI-related spending.
- Microsoft highlighted that AI is now one of its largest businesses and pointed to long-term growth.
- Meta projected sharply higher capital spending in 2026 to fund its Meta Super Intelligence Labs and core business.
Top Stories
