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Investor sentiment towards ethereum (ETH-USD), the largest altcoin by market capitalization, has seen a “significant increase” through 2023, coinciding with an incredible year-to-date rally in the crypto market. larger death. On the contrary, investors have dialed back growth outlook for bitcoin (BTC-USD).
Since the beginning of 2023, following the crypto trend the previous year, both ether (ETH-USD) and bitcoin (BTC-USD) saw massive, escalating buying pressure thirty first% and 39%, respectively, as of Friday afternoon. In addition, the tokens have recently erased losses since the boom of crypto exchange FTX in November 2022 (FTT-USD), a sudden event that roiled the market and tarnished the industry’s reputation.
Although bitcoin (BTC-USD) Outstanding performance compared to the beginning of the year compared to ether (ETH-USD), a record 60% of investors believe ETH has the most attractive growth prospects, according to a CoinShares survey conducted from December 29, 2022 to January 23, 2023, up from 40% in the October 2022 survey. On the other hand, about 30% of respondents viewed bitcoin (BTC-USD) is the most attractive in the future, down from nearly 40% previously.
Last week, CoinShares recorded weekly inflows for investment products that allow investors to bet on lower bitcoin (BTC-USD) price hit the level highest point as of July 2022, while products with higher ether bets (ETH-USD) price has seen solid inflows. That dynamic underscores bitcoin’s bearish bias against ether.
Overall, the survey, which included 43 responses from investors managing $390 billion in assets, indicates that portfolio-weighted digital assets make up 1.1% of the portfolio. investment portfolio, up from 0.7% previously. Investors cited both speculation and exposure to distributed ledger technology as the main reasons behind buying shares in digital assets.
Like all asset classes, digital assets carry certain risks, with the two biggest risks being increased regulation and government bans, “although few people expect such measures to be effective.” political containment measures and government bans,” CoinShares said. “This shows that investors see regulation as a solution rather than an outright ban.”
The survey also shows growing concerns about digital asset custody, which has implications for FTX (FTT-USD) collapse (and its contagion) is said to have caused the US Securities and Exchange Commission to enhanced inspection of registered investment advisors, who directly or indirectly have the authority to monitor clients’ crypto assets.
Vincent Gusdorf, senior vice president, head of DeFi and Digital Asset Analysis at Moody’s Investor Services, expects bitcoin (BTC-USD) and ether (ETH-USD) to dominate the crypto landscape in 2023 “as investors seek out more established assets,” he said in a recent report. “Tighter financial conditions and the possibility of new scams will hamper the recovery of the crypto-asset market. However, innovation and the introduction of regulatory frameworks in some territories will provide a better operating environment.”
Looking for Alpha Contributor The Digital Trend noted about bitcoin (BTC-USD) recent rally and bottom call by market participants, but still skeptical.
