• 60% of institutional investors are bullish on Ethereum as its market cap stands at over $190 billion.
• Speculative interest and exposure to distributed ledger technology are key reasons for increased interest in Ethereum.
• Bitcoin is also seen as a potential investment by institutional investors, while other coins attracting institutional investors include Polkadot, Cardano and XRP.
Institutional investors are increasingly showing bullish sentiment towards Ethereum, the second largest cryptocurrency by market cap, according to the latest survey results published by digital assets manager CoinShares. As of 27 January 2023, Ethereum’s market cap stands at over $190 billion, while its much larger peer, Bitcoin, stands at over $482 billion.
CoinShares’ Digital Asset Quarterly Fund Manager Survey suggests that the bullish sentiment around the top altcoin has increased by 20% since the last survey in October 2022, with 60% of respondents from major wealth majors, family offices, hedge funds and financial advisors, believing Ethereum has a better growth outlook in 2023. This is in comparison to the 40% of respondents who had indicated a bullish outlook for the leading smart contracts platform in October.
The increased interest in Ethereum appears to be driven by speculative interest and exposure to distributed ledger technology, with institutional investors also looking at Bitcoin and other coins as potential investments. Other coins which are attracting institutional investors include Polkadot, Cardano and XRP.
CoinShares’ survey also revealed that cryptocurrency assets under management (AUM) had grown by $7 billion since October, with the majority of the increase coming from institutional investors. The survey also noted that crypto derivatives saw a 21% increase in AUM, while crypto spot AUM grew by 7%.
The survey also revealed that institutional investors are increasingly looking to build a diversified portfolio of digital assets, with 80% of respondents indicating that they are holding three to five different coins. This is up from the 70% of respondents who reported the same in October.
The survey also showed that institutional investors have a positive outlook for the cryptocurrency market in 2023, with 40% expecting a bull market. This is up from the 20% of respondents who expected a bull market in October.
Overall, it appears that institutional investors are becoming increasingly bullish on Ethereum and other cryptocurrencies, with their speculative interest and exposure to distributed ledger technology driving increased interest. With AUM growing and a positive outlook for the cryptocurrency market in 2023, it is likely that institutional investors will continue to be bullish on Ethereum and other cryptocurrencies in the coming months.