Institutional investors may be more open to crypto assets other than Bitcoin (BTC) and Ethereum (ETH), says David Duong, Head of Institutional Research, at Coinbase.
According to Duong, nearly half of all institutional flows on Coinbase are directed toward assets other than BTC and ETH. He made these comments during a live chat with crypto analyst Scott Melker.
In terms of flows, 55% of institutional clients continue to bet on BTC and ETH, while the rest continue to believe in altcoins. Duong is of the opinion that a lot of attention is being paid to what’s going on in the ecosystem outside of Bitcoin and Ethereum.
Of course, Ethereum will be the next major thing given the anticipation of the Shanghai fork.
Duong says that market conditions are currently relatively uncertain due to macro factors, seasonality, and the potential for crypto to dissociate itself from other risk assets. He further added,
“I think what’s happening right now tends to be a lot more macro-focused, in so far as, I think what people don’t realize is this just seasonally a weaker period for a lot of risk assets because we’re in between that period where people have their bonus payments, putting money into their 401ks, and right before we’re getting a lot of checks being cut for tax season.”
Bitcoin to soon enter a bull market in the summer
Mark Yusko, the founder, and CEO of investment advisor Morgan Creek Capital Management, also appeared on the show. Yusko believes that Bitcoin could soon be entering a new bull market. Crypto spring is mostly range-bound price action, with summer representing a bullish period.
The fact that institutional investors are becoming more interested in altcoins other than Bitcoin and Ethereum suggests that the crypto market may become more diverse in the next few months.
This could have a positive effect on the overall market by increasing demand for altcoins, which could drive up their value.
However, it is important to note that Bitcoin and Ethereum continue to be the primary focus for institutional investors. Any significant market movements in these assets could have a significant impact on the crypto market as a whole.
