Bybit, a well-known company specializing in crypto-derivative trading, has recently published its Q2 Asset Allocation Report, covering the period from December 2023 to May 2024. This report offers valuable insights into the changing investment preferences of institutional and retail investors in the crypto market.
One notable shift in investment patterns is the decreased exposure to stablecoins and the increased focus on major cryptocurrencies like Bitcoin and Ethereum. According to the report, as of May 2024, Bitcoin remains the top asset held by Bybit users, accounting for 26% of all user assets on the platform. This highlights the significance of Bitcoin as a foundational element in crypto investment strategies.
The report also reveals that stablecoins have seen a decline in dominance, with their share of total holdings decreasing from 50.2% in December 2023 to 42.8% in May 2024. This shift away from stablecoins indicates a growing confidence in more volatile crypto assets as prominent components of investment portfolios.
A closer examination of Bybit’s data reveals contrasting approaches between institutional and retail traders. Institutions have recently shown a preference for Bitcoin and Ethereum, considering them as larger-cap assets with potential. As of May, these institutions have concentrated 38.9% of their holdings in Bitcoin and 20.3% in Ethereum. On the other hand, retail traders exhibit a relatively stronger preference for Bitcoin compared to Ethereum, although not as pronounced as the whales in these particular assets.
Eugene Cheung, Bybit’s Head of Institutions, emphasizes the company’s commitment to being the preferred partner for institutions seeking a reliable and robust trading platform. Bybit’s specialization in high liquidity and a capital-efficient account structure makes it particularly attractive to institutional clients. With a global community of over 30 million users, Bybit aims to provide best-in-class service with 24/7 customer support and a professional trading environment.
The shift away from stablecoins towards more established cryptocurrencies reflects a growing confidence in the token ecosystem. Traders are increasingly valuing cryptocurrencies as both safe haven and growth assets, depending on market conditions.