On Monday, a prominent crypto-derivative trading company – Bybit released its Q2 Asset Allocation Report which spans from the month of December 2023 to May 2024. This report provides critical insights into the changing preferences of both institutional and retail investors within the crypto market.
Notably, there has been a significant shift in the investment patterns, particularly with a decreased exposure to stablecoins and an increased focus on major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
According to the report, as of May 2024, Bitcoin is still leading all the assets held by Bybit users and it makes up 26% of all the user assets on the platform. This bias highlights Bitcoin as a foundational block in crypto investment plans.
The report also notes that stablecoins have nearly halved their dominance of total holdings – having dropped to 42.8% from 50.2% in December 2023. This pivot away from stablecoins suggests a growing confidence in more volatile crypto assets as major components of investment portfolios.
Institutional vs. Retail Trends in Crypto Investments
A closer look at Bybit’s data paints a contrasting picture of the approaches by institutional and retail traders. More recently, institutions have been focusing their investments towards Bitcoin and Ethereum which appear to be seen as larger-cap thoroughbred assets.
As of May, holding
and
have been concentrated to 38.9% and 20.3%, respectively On the other hand, retail traders seem to have a comparative preference for BTC than ETH yet one not as perceivably forceful when contrasted with whales in these particular assets.
Bybit’s Head of Institutions Eugene Cheung highlights that “Bybit continues to solidify its position as the preferred partner for institutions seeking a reliable and robust trading platform.”
This is particularly attractive to institutional clients as Bybit specializes in high liquidity and a capital-efficient account structure. This is underscored by the fact that they have a total community of over 30 million users worldwide and its dedication to providing best-in-class service with support in 24/7 customer service and professional trading environment.
The move away from stablecoins and into more established cryptocurrencies represents a growing confidence in the token ecosystem, from which traders are starting to value cryptos as both safe haven and growth assets depending on market conditions.
