According to a new CoinShares survey, institutional investors are leaving XRP, Cardano, DOT and Bitcoin and returning to the smart contract giant.
Institutions exclude XRP, Cardano and DOT from the list
The results of a survey of fund managers published by CoinShares show that institutional investors are moving away from volume giants such as Cardano (ADA), Polkadot (DOT), Bitcoin (BTC), and moving to Ethereum (ETH). According to the report, price changes in the first two months of the year are responsible for this behavior:
Price fluctuations in January and February of this year led to the fact that investors’ perception shifted in favor of large companies such as Bitcoin and Ethereum, at the expense of smaller companies such as Polkadot, Cardano and XRP.
According to a CoinShares survey, sentiment among Ethereum’s competitors, including Solana (SOL), Avalanche (AVAX), Cosmos (ATOM) and Terra (LUNA), is improving:
The attitude towards Solana has improved, but “other” cryptocurrencies have also improved, in particular Avalanche, Cosmos and Luna.
Investors Prefer Cryptocurrencies
According to the survey, in addition to diversifying their portfolios, investors are increasingly investing their money in cryptocurrencies as expectations for a new asset class grow:
Investors are increasingly accumulating cryptocurrency stocks for reasons of diversification.
Although the cryptocurrency market has been in a downward trend since December 2021, speculation remains the main engine of investment in cryptocurrency, as a growing proportion of investors view cryptocurrency as superior value. According to the CoinShares survey, which we quoted from Somagnews, the biggest risk for investors is government restrictions on cryptocurrencies. At the time of the survey, the Mica bill was on the agenda of the cryptocurrency market:
This survey was conducted in March 2022, when, after a vote in the European Union Parliament, concerns about the Proof-of-Work (PoW) ban reached an all-time high. President Biden’s executive action was also expected. As a result, the political ban and the government ban have risen to the top of the list of major threats. In the end, the PoW ban did not take effect, and the presidential decree prompted several ministries to conduct additional research on digital assets.