ByBit sees BTC, ETH ‘flight’ of institutional investors to stablecoins - but not for long

The cryptocurrency speech ByBit released its 4th 4th report connected Dec. 4, highlighting and comparing trends betwixt its organization and retail investors. 

The study recovered that organization traders had immoderate 45% of their assets successful stablecoins, with the remaining divided 35% successful Bitcoin (BTC), 15% successful Ether (ETH) and lone 5% successful altcoins, which the speech categorizes arsenic thing different than the aforementioned integer assets.

The survey suggests that the “flight” to “safer assets,” similar stablecoins, successful a carnivore marketplace “might explicate this risk-averse plus allocation from traders.”

Nonetheless, organization traders’ allocation of Bitcoin (BTC) did spike successful September, which differentiated itself from the holding patterns of different types of users.

Surge successful organization traders' BTC holdings successful September 2023. Source: ByBit

According to ByBit, the alignment of a surge successful organization (BTC) holdings with the prevailing affirmative marketplace cognition toward Bitcoin tin beryllium correlated with “favorable suit outcomes, fostering anticipation for the SEC's imaginable support of a spot BTC ETF.” 

On Dec. 4, (BTC) surged supra $41,000 for the archetypal clip successful 19 months, and the wide marketplace headdress for the integer plus passed $800 billion, overtaking the existent property institution Berkshire Hathaway and present down companies similar Meta (formerly Facebook) and Nvidia.

Related: Coinbase warns customers astir subpoena successful evident CFTC Bybit probe

ByBit besides noted that its retail traders had the lowest holdings, percentage-wise, of Bitcoin compared to its different types of users. Comparatively, its retail traders held much stablecoins, and though stablecoins inactive made up a ample information of organization portfolios, their holdings began to decline.

Earlier this twelvemonth the speech said its idiosyncratic basal deed 20 million, and past year, it was ranked among the apical 10 cryptocurrency exchanges successful the satellite by volume.

Parallel to (BTC) prices continuing to climb, the involvement from large institutions seems to beryllium connected the rise. On Dec. 4, Brazil’s largest bank, Itau Unibanco, reportedly launched a (BTC) trading work for its clients connected to its concern platform.

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