Bybit: Ethereum is Largest Crypto Asset for Institutions

A recent report by Bybit highlights that the upcoming Dencun update has led to Ethereum becoming the most invested cryptocurrency among financial institutions.

Based on client reports as of January 31, Bybit found that funds were rotated from other altcoins and Bitcoin into Ethereum, the second largest cryptocurrency by market capitalization, starting in December.

In particular, there was a decrease in the popularity of memecoins, L2-, AI-, and BRC-20 tokens, which had seen significant growth in 2023.

While Bitcoin remains the preferred cryptocurrency for retail investors, Ethereum took the lead in institutional portfolios, accounting for 79.3% of their assets under management compared to 34.56% for general digital asset enthusiasts.

Retail investors tended to concentrate on altcoins (28.8%) and stablecoins (36.6%).