• 60% of institutional investors are bullish on Ethereum, believing it has a better growth outlook in 2023.
• Bitcoin is also seen as one with huge potential, while other coins attracting institutional investors are Polkadot, Cardano and XRP.
• Speculative interest and exposure to distributed ledger technology are main reasons for the increased interest.
Institutional investors are increasingly bullish on Ethereum, the second largest cryptocurrency by market cap with a market worth nearly $190 billion, according to a new survey. The survey conducted by digital asset manager CoinShares reveals that 60% of respondents from major wealth managers, family offices, hedge funds and financial advisors believe that Ethereum will be a better investment in 2023 compared to the 40% that expressed a similar view in its October 2022 survey.
The report further highlights that the increase in bullish sentiment around Ethereum is mainly due to speculative interest and exposure to distributed ledger technology. Other cryptocurrencies that are also seeing increased interest from institutional investors include Bitcoin, Polkadot, Cardano and XRP.
Bitcoin, the world’s largest cryptocurrency by market cap with a worth of over $482 billion, is also seen as one with huge potential. This is partly due to its increasing adoption by high-profile companies and its increasing use as a store of value. Other coins, such as Polkadot, Cardano, and XRP, are also gaining traction from institutional investors.
Polkadot, a blockchain network that enables the interoperability between different networks, is seen as an attractive investment due to its ability to facilitate cross-chain transactions. Similarly, Cardano is gaining traction for its ability to support smart contracts and decentralized applications, while XRP is becoming more popular due to its low transaction fees and fast transaction speeds.
Overall, institutional investors seem to be increasingly bullish on the cryptocurrency market in general, with Ethereum leading the charge. With the increasing adoption of cryptocurrencies and distributed ledger technology, the future of the crypto market looks bright. It remains to be seen how the market will evolve in the coming years and whether the bullish sentiment around Ethereum and other cryptocurrencies will continue.