Bybit Q2 Asset Allocation Report: Declining Stablecoin Holdings Signal Increased Risk Appetite Among Investors

The Q2 Asset Allocation report, which covers the period from December 2023 to May 2024, notes that BTC remains the largest single asset held by all users.

Crypto exchange Bybit has unveiled its Q2 Asset Allocation report, revealing a declining trend in stablecoin holdings among its users. According to the report, stablecoin holdings decreased from 50.2% of users' total assets in December 2023 to 42.8% in May 2024, marking a significant shift in investors' asset preferences.

The report, which covers the period from December 2023 to May 2024, further highlights that Bitcoin (BTC) remained the largest single asset held by all users throughout this period. On average, 26% of users’ total assets were allocated to this flagship cryptocurrency.

This sustained popularity of BTC among Bybit users is also evident in the institutional user data, with an average holding of 39.4% in BTC as of May. Together with ETH at 20.9%, these two cryptocurrencies alone accounted for over 61% of users’ crypto investments, excluding stablecoins.

A striking observation from the institutional user data is their higher concentration in BTC and ETH compared to retail traders. While both institutions and retail traders showed a preference for BTC over ETH, institutional users had a notably higher allocation to BTC.

Highlighting Bybit's strength in catering to institutional traders, Eugene Cheung, Head of Institutions at Bybit, remarked, “As a leading crypto exchange in the industry, Bybit continues to solidify its position as the preferred partner for institutions seeking a reliable and robust trading platform. Our commitment to providing deep liquidity, ensuring asset safety, and offering a capital-efficient account structure sets us apart. We remain dedicated to providing the highest quality service and support, empowering institutions to thrive in the dynamic world of digital assets.”

In a separate report, Bybit previously disclosed that institutional investors have tripled their ETH exposure ahead of the launch of an ETH Spot ETF, which is expected to begin trading in the first week of July. According to the exchange's data, institutional investor allocation to ETH before the announcement of the ETF was at 6.54%, which then increased to 14.29%. During this period, Bitcoin’s allocation also shifted, moving from 26.60% to 30.26%. Notably, stablecoins and other cryptocurrencies lost market share during this process.

While institutional investors ramped up their ETH allocations in anticipation of the ETF launch, retail investors also followed suit, albeit to a lesser extent. According to the crypto exchange, retail allocation to ETH increased from 7.40% to 9.52%, reflecting a generally positive response to the ETF announcement, which took place on May 24, 2024.

An exchange-traded Fund (ETF) is a type of investment fund that trades on stock exchanges and can hold various assets like stocks, commodities, or bonds. In the case of the ETH Spot ETF, it is directly backed by Ethereum, meaning that the fund holds actual ETH in its reserves.

Expectations are that the ETH Spot ETF will capture 15-20% of the assets of Bitcoin ETFs in the United States, which would translate to $8-12 billion, and more is anticipated from global markets.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bybit-q-asset-allocation-report-declining-stablecoin-holdings-signal-increased-risk-appetite-investors.html

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