Januar 29, 2023

Institutional Investors Bullish on Ethereum as Market Cap Tops $190B

Von admin

• 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, with other coins attracting institutional investors being Polkadot, Cardano and XRP.
• Speculative interest and exposure to distributed ledger technology are the main reasons for the increased interest.

Institutional investors have become increasingly bullish on Ethereum as the second-largest cryptocurrency by market cap gains more attention from major wealth managers, family offices, hedge funds and financial advisors. With its market worth nearly $190 billion, Ethereum is set to benefit from the growing interest, with some investors believing it is a better investment for 2023 than Bitcoin, which has a market cap of over $482 billion.

The sentiment shift is evident from the results of the latest Digital Asset Quarterly Fund Manager Survey conducted by digital assets manager CoinShares. According to the survey, 60% of respondents are bullish on Ethereum’s prospects in 2023, which is 20% more than the 40% that indicated a bullish outlook in October 2022.

The main reasons for the bullish sentiment appear to be speculative interest and exposure to distributed ledger technology. Many institutional investors are investing in Ethereum, Polkadot, Cardano and XRP as they believe these coins have the potential to generate long-term returns.

Given the increasing interest, it is not surprising that Ethereum is being viewed as a “safe haven” by some investors. The altcoin has been relatively stable compared to Bitcoin, which has seen its price swing wildly in the last few months. Ethereum’s price has also been increasing steadily, with its value rising from around $1,400 at the start of 2021 to nearly $2,400 currently.

Another factor that is driving institutional investors’ interest in Ethereum is its use for DeFi and non-fungible tokens (NFTs). Ethereum-based protocols are making it easier for users to engage in Decentralized Finance (DeFi) and NFTs, which are becoming increasingly popular. This is leading to increased demand for Ethereum and its related tokens, which may continue to drive its price up in the future.

Given the increasing bullish sentiment from institutional investors, it is likely that Ethereum will continue to attract more investors in the near future. As the cryptocurrency industry matures, the number of institutional investors entering the market is likely to continue to grow, which will further bolster Ethereum’s prospects.