Bybit, a well-known company in the crypto-derivative trading industry, has recently released its Q2 Asset Allocation Report, covering the period from December 2023 to May 2024. This report offers valuable insights into the changing investment preferences of institutional and retail investors in the crypto market.
One notable shift in investment patterns is the decreased exposure to stablecoins and the increased focus on major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
According to the report, as of May 2024, Bitcoin remains the top asset held by Bybit users, accounting for 26% of all user assets on the platform. This highlights Bitcoin’s significance as a foundational block in crypto investment strategies.
The report also highlights a significant decline in the dominance of stablecoins in total holdings, dropping from 50.2% in December 2023 to 42.8% in May 2024. This shift suggests a growing confidence in more volatile crypto assets as key components of investment portfolios.
When comparing the investment approaches of institutional and retail traders, Bybit’s data reveals distinct differences. Institutions have been increasingly focusing their investments on Bitcoin and Ethereum, considering them to be larger-cap assets with strong potential. As of May, these institutions hold 38.9% and 20.3% of Bitcoin and Ethereum, respectively. On the other hand, retail traders show a relatively higher preference for Bitcoin compared to Ethereum, although not as pronounced as the institutional traders’ preference.
Eugene Cheung, Head of Institutions at Bybit, emphasizes the company’s commitment to being the preferred partner for institutions seeking a reliable and robust trading platform. Bybit’s specialization in high liquidity and a capital-efficient account structure is particularly attractive to institutional clients. With over 30 million users worldwide, Bybit prides itself on providing top-notch service with 24/7 customer support and a professional trading environment.
The shift away from stablecoins towards more established cryptocurrencies reflects a growing confidence in the token ecosystem. Traders are beginning to view cryptocurrencies as both safe haven assets and growth assets, depending on market conditions.
Tags: BTC, Bybit
