BTC Dominance Rise On Institutional Buying
Institutional traders have significantly increased their Bitcoin (BTC) holdings in the first three quarters of 2023, nearly doubling their assets. This increase is attributed to positive market sentiment and anticipation of the approval of a spot BTC exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Retail traders have maintained lower BTC holdings, possibly due to higher leverage trading activities. By September 2023, institutional traders had allocated half of their assets to Bitcoin, a significant shift in their portfolio composition.
The bullish outlook for Bitcoin’s future, driven by potential ETF approval and market optimism, has motivated institutional players to significantly increase their exposure to the cryptocurrency. The Bybit research report also highlights institutional skepticism towards altcoins, with a consistent decline in altcoin holdings among traders, particularly among institutional investors. Ether (ETH) holdings have generally declined since the Ethereum blockchain’s Shapella upgrade, but a surge in Ether holdings among institutional traders in September coincided with a positive overall sentiment in the crypto market.
(With inputs from Shikha Singh)
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