Ethereum

United

Bitcoin

April

Spot

Reports have revealed that institutional investors are shifting their focus to Ethereum, displaying a preference compared to the largest cryptocurrency, Bitcoin. Despite Bitcoin’s recent <a href="https://www.newsbtc.com/news/bull-run-returns-bitcoin-breaks-through-57000-barrier/">rally to over $55,000</a>, Ethereum’s unique features and potential developmental capabilities continue to capture institutional players’ interest.&nbsp; 
<h2 id="institutions-favor-ethereum-over-bitcoin">Institutions Favor Ethereum Over Bitcoin</h2> 
On February 24, cryptocurrency exchange, Bybit, <a href="https://blog.bybit.com/en/post/navigating-bull-and-bear-markets-a-dive-into-asset-allocation-2024q1--blte1f124cb760ac1e0/" rel="nofollow">published</a> a research report on its users’ asset allocation. The research examined investors’ hodling and trading behaviours, covering the period from July 2023 to January 2024. Bybit’s report also provided valuable insights into investors’ asset allocation across cryptocurrencies such as <a href="https://www.newsbtc.com/news/crypto-analyst-unveils-ultimate-altcoin-buying-guide/">altcoins</a>, <a href="https://www.newsbtc.com/news/stablecoins-surge-usdt-leads-400-million-inflows-signaling-investor-confidence/">stablecoins</a> and <a href="https://www.newsbtc.com/news/ethereum/is-ethereum-overvalued-similar-to-meme-coins-like-shiba-inu/">meme coins</a>, shedding light on the specific coins users are currently bullish or bearish on.&nbsp;&nbsp; 
According to the research report, Ethereum has unexpectedly emerged as the primary cryptocurrency choice for institutional investors. The report revealed that “institutions are betting big on Ethereum,” <a href="https://bitcoinist.com/whale-ethereum-exits-bitcoin-stellar-performance/" rel="nofollow">allocating more of their funds to ETH compared to BTC.&nbsp;</a> 
Bybit has disclosed that the recent rise in interest in Ethereum began in September 2023, when ETH was still trading around $2,000. Subsequently, Ethereum’s market sentiment became more <a href="https://www.newsbtc.com/analysis/eth/ethereum-price-climbs-3000/">bullish</a>, experiencing a surge in investor interest to about 40% by January 2024. The crypto exchange has confirmed that, as of January 31, ETH has become the single largest cryptocurrency held by institutions. 
Bybit’s report also revealed that institutional investors’ <a href="https://bitcoinist.com/bitcoin-exodus-are-investors-selling-btc-in-favor-of-etfs/" rel="nofollow">interest in Bitcoin began to wane </a>following the United States Securities and Exchange Commission (SEC) <a href="https://bitcoinist.com/breaking-spot-bitcoin-etfs-approved-by-us-sec/" rel="nofollow">approval of Spot Bitcoin ETFs</a> on January 10, 2024. At the time, Bitcoin had experienced massive selling pressures, resulting in investors trimming their BTC holdings to favour other cryptocurrencies.&nbsp; 
The <a href="https://www.newsbtc.com/news/ethereum/whos-behind-the-latest-41-million-ethereum-buying-spree-justin-sun-again/">excessive allocation of Ethereum</a> is reportedly attributed to investors anticipating a favourable outcome from Ethereum’s upcoming <a href="https://bitcoinist.com/altcoin-price-boom-with-ethereum-dencun-upgrade/" rel="nofollow">Decun Upgrade</a>, slated to launch in March 2024.&nbsp; 
Notably, Bybit has disclosed that it is still being determined if the recent shift to Ethereum is a short-term manoeuvre or a more prolonged move. However, the approaching <a href="https://www.newsbtc.com/news/bitcoin/when-is-the-next-btc-halving-date-bitcoin-halving-guide/">Bitcoin halving</a> in April potentially adds a layer of bearish risks, as <a href="https://bitcoinist.com/post-bitcoin-halving-crypto-fund-148000-target/" rel="nofollow">projections</a> indicate Bitcoin’s significant rise in value to new all-time highs during the halving phase.&nbsp; 
<img loading="lazy" decoding="async" class="aligncenter" src="https://www.tradingview.com/x/fdm0Hfgu/" alt="Ethereum price chart from Tradingview.com (Bitcoin)" width="3286" height="1530"> 
<h2 id="retail-investors-think-otherwise">Retail Investors Think Otherwise</h2> 
Bybit’s research report also examines the asset allocation trend for retail investors on the cryptocurrency exchange. The report revealed that retail investors are significantly more <a href="https://bitcoinist.com/avoid-ethereum-eth-costs-says-bitcoin-advocate/" rel="nofollow">bullish on Bitcoin than Ethereum</a>, allocating more funds into BTC than ETH despite Ethereum’s recent surge in value.&nbsp; 
Over the past week, Ethereum has <a href="https://www.newsbtc.com/news/ethereum/ethereum-leaves-bitcoin-behind-rally-sustainable/">experienced a substantial hike</a> in its price, jumping over 7% and outpacing Bitcoin, suggesting a potential for a more extensive <a href="https://www.newsbtc.com/news/ethereum/ethereum-price-tops-3100-mega-wedge-breakout/">upward trajectory</a>. At the time of writing, Ethereum is trading at $3,227, reflecting a 4.05% increase in the last 24 hours, according to CoinMarketCap.&nbsp; 
While <a href="https://www.newsbtc.com/analysis/eth/ethereum-price-rally-3250/">Ethereum’s massive rally</a> has successfully elevated the sentiment among institutional investors, retail investors remain less swayed, opting to hold onto or incorporate additional <a href="https://www.newsbtc.com/news/bitcoin/buy-bitcoin-ethereum-bull-run/">Bitcoin</a> into their diversified portfolio of digital assets.&nbsp;

Ethereum Outperforms Bitcoin As Institutional Investors Clamor For ETH Exposure

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