Institutional Investors Bullish on Bitcoin as per Bybit Research

• Compared to ethereum’s 87% increase, bitcoin’s price has increased by almost 140% YTD.
• Ethereum (ETH) holdings have usually dropped following the Shapella update.

New data from Bybit Research suggests that institutional investors are suspicious about altcoins, have mixed feelings about ether, and are positive on bitcoin. Institutional investors almost doubled their Bitcoin (BTC) holdings in the first three quarters of 2023.

Due to bullish market mood and the expectation that the U.S. SEC would approve a spot Bitcoin exchange-traded fund (ETF) in September, half of their assets were denominated in BTC. Their position stands in stark contrast to regular traders’ smaller Bitcoin holdings, which Bybit attributes to greater leverage levels.

Bitcoin Outshines Altcoins

According to the research, institutional traders and “whales,” were wary of altcoins. Despite a temporary uptick in May, data shows that traders’ altcoin holdings have generally declined. In August, there was a noticeable decline, especially among institutions, which indicates that they are being careful with these riskier assets.

Despite a spike in September among institutional traders amidst a favorable crypto sentiment and enthusiastic markets due to ETF announcements, data reveals that Ethereum (ETH) holdings have usually dropped following the Shapella update.

K33 Research said in an October report that it was changing its attitude on asset allocation and recommending a return to bitcoin as a result of ether’s extended decline versus BTC since July 2022 and a lackluster reaction to the recently introduced ETH ETFs based on futures.

Compared to ether’s 87% increase, bitcoin’s price has increased by almost 140% so far this year. At the time of writing, Bitcoin is trading at $41,573, up 5.42% in the last 24 hours as per data from CoinMarketCap.