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Written by: Marcus Wang
Dive deep with us as we explore the first CEX-initiated research series on user asset allocation using Bybit’s proprietary data. Discover valuable insights into how users adapt their trading strategies in bull and bear markets.
Our research centers around how institutions respond to market volatility in terms of asset allocation, in particular in the volatile market since July 2023. This report is a sequel to our first report issued on Sep 20, 2023.
Access the full report below, followed by highlights from our research team.
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Since our last report, we have observed remarkable changes in portfolio allocation for institutions. As a highlight, their portfolio has become more concentrated than ever, with a total of 80% of assets to Bitcoin and Ether, where institutions allocate 30% of total assets originally in stablecoin to Bitcoin and Ether. The re-allocation shows the bullishness of institutions on the market performance in the near future.
It is very interesting that Ether has become the institution’s new favorite. Our last report shows institutions piled up their position in Bitcoin in September 2022 ahead of the potential approval of Bitcoin spot ETF by the SEC back then. The updated data suggests that they have shifted assets from Bitcoin and stablecoins to Ether.
The outperformance of Ether in the past 30 days echoes the timing of this tactical shift by institutions
Institutions make their asset allocation to altcoins flat, with a total of 5% of portfolio assets into altcoins only. Among them, Layer 1 tokens are the most favorite category, with minimum assets in the meme, BRC-20, AI, and Game-Fi tokens.
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