Bybit, a well-known company in the crypto-derivative trading industry, recently published 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 trend is a significant shift in investment patterns, with a decrease in exposure to stablecoins and a greater focus on major cryptocurrencies such as 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 confirms Bitcoin’s status as a fundamental component of crypto investment strategies.
The report also highlights that stablecoins have seen a decline in dominance, dropping from 50.2% in December 2023 to 42.8% in May 2024. This shift away from stablecoins indicates a growing confidence in more volatile crypto assets as key elements of investment portfolios.
Analyzing Bybit’s data, we observe distinct approaches between institutional and retail traders. Institutions have recently been directing their investments towards Bitcoin and Ethereum, considering them as larger-cap assets with greater 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 stronger preference for BTC compared to ETH, although not as pronounced as the whales in these assets.
Eugene Cheung, Bybit’s Head of Institutions, emphasizes that “Bybit continues to solidify its position as the preferred partner for institutions seeking a reliable and robust trading platform.” This is particularly appealing to institutional clients because Bybit specializes in high liquidity and a capital-efficient account structure. With a global community of over 30 million users, Bybit is dedicated to delivering top-notch service, including 24/7 customer support and a professional trading environment.
The move away from stablecoins towards more established cryptocurrencies reflects a growing confidence in the token ecosystem. Traders are increasingly recognizing cryptos as both safe havens and growth assets, depending on market conditions.
Tags: BTC, Bybit