Institutional Traders Allocate 45% of Assets to Stablecoins
The latest report from cryptocurrency exchange ByBit reveals that institutional traders have allocated 45% of their assets to stablecoins, according to their 4th quarter report released on Dec. 4. This allocation is significantly higher compared to the 35% in Bitcoin (BTC), 15% in Ether (ETH), and 5% in altcoins.
"Flight" to "Safer Assets" Explains Allocation
ByBit suggests that institutional traders' preference for stablecoins in a bear market is due to the desire for "safer assets." This risk-averse asset allocation may explain why stablecoins make up a large portion of institutional portfolios.
Spike in Institutional BTC Holdings in September
Interestingly, ByBit's report highlights a spike in institutional BTC holdings in September, which differed from the holding patterns of other types of users. ByBit attributes this surge to "favorable lawsuit outcomes" and anticipation for the potential approval of a spot BTC ETF by the SEC.
Retail Traders Hold Lowest Percentage of BTC
By contrast, retail traders on ByBit hold the lowest percentage of BTC compared to other types of users. Instead, they have a higher allocation of stablecoins. However, ByBit notes that even institutional portfolios are seeing a decline in stablecoin holdings.
Bitcoin's Market Cap Surpasses $800 Billion
On Dec. 4, Bitcoin surged above $41,000 for the first time in 19 months, and its market cap exceeded $800 billion. This milestone places Bitcoin ahead of companies like Berkshire Hathaway and behind Meta and Nvidia.
ByBit Continues to Attract Users
ByBit, which boasts a user base of 20 million, has been ranked among the top ten cryptocurrency exchanges worldwide by volume. The exchange's popularity is growing alongside the rising interest from major institutions in Bitcoin.
Brazil's Largest Bank Launches BTC Trading Service
Parallel to the increasing Bitcoin prices, Brazil's largest bank, Itau Unibanco, reportedly launched a BTC trading service for its clients connected to its investment platform on Dec. 4.
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