Bybit Q2 Asset Allocation Report: Bitcoin (BTC) and Ethereum (ETH) Dominate as Stablecoins Halve Their Market Share

On Monday, a prominent crypto-derivative trading company – Bybit released its Q2 Asset Allocation Report which spans from the month of December 2023 to May 2024.

Crypto-derivative trading company Bybit has released its Q2 Asset Allocation Report, which spans from December 2023 to May 2024. The report provides insights into the changing preferences of both institutional and retail investors within the crypto market.

There has been a significant shift in the investment patterns, particularly with a decreased exposure to stablecoins and an increased focus on major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

As of May 2024, Bitcoin is still leading all the assets held by Bybit users and it makes up 26% of all the user assets on the platform. This bias highlights Bitcoin as a foundational block in crypto investment plans.

The report also notes that stablecoins have nearly halved their dominance of total holdings – having dropped to 42.8% from 50.2% in December 2023. This pivot away from stablecoins suggests a growing confidence in more volatile crypto assets as major components of investment portfolios.

A closer look at Bybit’s data paints a contrasting picture of the approaches by institutional and retail traders. More recently, institutions have been focusing their investments towards Bitcoin and Ethereum which appear to be seen as larger-cap thoroughbred assets.

As of May, holding patterns among retail traders show a greater diversity in their crypto-asset classes with a strong presence of smaller-cap altcoins in their portfolios. This could be attributed to the higher risk tolerance and shorter timeframes typically associated with retail traders.

On the other hand, institutions tend to prefer larger-cap cryptocurrencies such as Bitcoin and Ethereum due to their lower volatility and higher liquidity, which aligns with their long-term investment strategies.

Bybit’s Head of Institutions Eugene Cheung highlights that “Bybit continues to solidify its position as the preferred partner for institutions seeking a reliable and robust trading platform.”

This is particularly attractive to institutional clients as Bybit specializes in high liquidity and a capital-efficient account structure. This is underscored by the fact that they have a total community of over 30 million users worldwide and its dedication to providing best-in-class service with support in 24/7 customer service and professional trading environment.

The move away from stablecoins and into more established cryptocurrencies represents a growing confidence in the token ecosystem, from which traders are starting to value cryptos as both safe haven and growth assets depending on market conditions.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bybit-q-asset-allocation-report-bitcoin-btc-ethereum-eth-dominate-stablecoins-halve-market-share.html

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