• 60% of institutional investors are bullish on Ethereum, believing it will be a better investment in 2023.
• Bitcoin is also seen as having huge potential, while other coins attracting institutional investors are Polkadot, Cardano and XRP.
• Speculative interest and exposure to distributed ledger technology are the main reasons for increased interest.
Institutional investors are increasingly bullish on Ethereum, the second largest cryptocurrency by market cap. At the time of writing (27 January 2023), Ethereum’s market cap stood at nearly $190 billion, while Bitcoin’s market cap was over $482 billion.
CoinShares, a digital assets manager, recently published the results of its latest Digital Asset Quarterly Fund Manager Survey. The survey found that 60% of respondents – major wealth managers, family offices, hedge funds and financial advisors – believe Ethereum has a better growth outlook in 2023 than was the case going into the third quarter of last year. This is a 20% increase in bullish sentiment since the same survey in October 2022, when 40% of respondents had indicated a bullish outlook.
The main reasons for the increased interest in Ethereum are speculative interest and exposure to distributed ledger technology. Many institutional investors are now looking to include cryptocurrencies in their portfolios, and Ethereum is a top choice due to its established network and smart contract functionality.
The survey also found that Bitcoin is seen as having huge potential, with many institutional investors believing it will continue to dominate the market. Other coins that are attracting institutional investors are Polkadot, Cardano and XRP.
The increasing bullish sentiment of institutional investors towards Ethereum is a clear indication of the growing popularity of cryptocurrencies in general. As cryptocurrencies become more widely accepted, more and more investors are likely to become interested in the space. It remains to be seen if Ethereum can maintain its current level of popularity as other coins continue to rise in value.