DUBAI, UAE, Feb. 27, 2024 -- Bybit, one of the world's top three crypto exchanges by volume, has released "Navigating Bull and Bear Markets, A Dive Into User's Asset Allocation" — a new report showing how institutional and retail investors are positioned for the crypto bull market following the approval of the BTC ETF in January.

ETH Leads Institutional Bets But Retail Still Favor BTC According to Bybit Report

This first-hand glimpse into Bybit's extensive trading data shows that institutional investors have shifted towards Ether (ETH) with allocations reaching about 40% by the end of January 2024 — possibly driven by the upcoming Dencun upgrade to the Ethereum network. Retail allocations, on the other hand, are roughly 20% BTC and 10% ETH. When it comes to stablecoins, the report shows that retail have 36% in stablecoins, while institutions are more fully deployed, holding about 10% in stablecoins.

The analysis of altcoin positions reveals a notable trend of institutions and retail users reducing their holdings in January 2024, despite the significant returns observed in the preceding months. Institutions, in particular, have almost completely exited positions in highly volatile token categories like meme, AI, and BRC-20 tokens.

Ethereum's Layer 2 projects have also fallen out of favor. The report discovered a drop in dollar terms on the average L1 assets held by institutions. However, the drop was less significant compared to L2s, where institutions' average L2 assets dropped 70% in January.

"Institutions have set their course for the coming months, and their strategies can be a beacon for smart traders, showing what may happen next," said Eugene Cheung, VP and Head of Institution at Bybit. "Such knowledge proves invaluable, especially for those new to crypto, illuminating the shifting tides of asset allocation."

Read the full report here.

#Bybit / #TheCryptoArk

About Bybit

Bybit is one of the world's top-three cryptocurrency exchanges by volume with 20 million users. Established in 2018, it offers a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One's reigning Constructors' and Drivers' champions: the Oracle Red Bull Racing team.

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