Ethereum Takes the Lead as Institutional Capital Shifts as per Bybit Report

• According to Bybit, ether is now the one asset that institutions own the most of.
• This might be due to an expected price increase amidst the Dencun upgrade.

While individual users are much more positive on bitcoin, a recent analysis from Bybit research indicated that institutions are over-allocating their capital to ethereum (ETH). According to Bybit, ether is now the one asset that institutions own the most of, and this might be due to an expected price increase amidst the Dencun upgrade.

According to a research by Bybit, which questioned traders with assets in the exchange, institutional investors have shifted their portfolio concentration to 80% bitcoin and ether, with a substantial wager on ether owing to the expected Dencun upgrade. According to the report, retail consumers are more likely to own altcoins and have a lesser concentration in these assets.

Multiple Factors Contributing

The decreasing supply of Ether since the switch to proof-of-stake, low amounts of ETH stored on exchanges, and greater staking activity have all contributed to its 33% surge year-to-date, currently trading over $3100, which has caused it to beat bitcoin.

The expected Dencun upgrade, the expansion of Ethereum’s DeFi ecosystem and layer-2 networks, are all factors that, according to a new research by Bernstein analysts Gautam Chhugani and Mahika Sapra, are driving ETH’s performance in comparison to Bitcoin.

Institutions were bullish on bitcoin, mixed on ether, and were shifting more of their holdings into bitcoin in anticipation of the approval of the bitcoin exchange-traded fund (ETF) in December, when Bybit released its last report. Since then, market sentiment has changed.

Institutions have drastically cut their cryptocurrency holdings, according to Bybit, especially in highly volatile categories including meme coins, AI, and BRC-20 tokens, despite these categories’ high gains in 2023.

With a price spike above $57,000, Bitcoin has reached its highest point in almost two years. Despite widespread belief that a price drop was imminent, the biggest cryptocurrency has continued its relentless ascent into 2024. Moreover, Ethereum has surged above $3200 level amid the ongoing bull run.

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