Ethereum will shine brightest among cryptos, including bitcoin, survey finds

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Investor sentiment towards Ethereum (ETH-USD), the largest alt-coin by market capitalization, has seen a dramatic increase so far in 2023, coinciding with the incredible year-to-date rally in the market broader crypto-currencies. On the other hand, investors have reduced their growth prospects for bitcoin (BTC-USD).

Since the start of 2023, following the crypto rout the previous year, ether (ETH-USD) and bitcoin (BTC-USD) have come under immense buying pressure, surging 31% respectively. and 39%, Friday afternoon. Additionally, the tokens recently erased their losses since the November 2022 implosion of crypto exchange FTX (FTT-USD), a brutal event that shook the market and tarnished the reputation of the industry.

Despite Bitcoin (BTC-USD) outperforming Ether (ETH-USD) year-to-date, a record 60% of investors believe ETH has the most compelling growth prospects, according to a CoinShares survey conducted between December 29, 2022 and January 23, 2023. , compared to 40% in the October 2022 survey. more attractive in the future, compared to nearly 40% previously.

Last week, CoinShares noted that weekly inflows for bullion products that allow investors to bet on falling bitcoin (BTC-USD) prices hit their highest level since July 2022, while products that betting on higher Ether (ETH-USD) prices saw strong inflows. This dynamic highlights bitcoin’s decline against ether.

Overall, the survey, which included 43 investor responses covering $390 billion in assets under management, indicated that the weighting of digital assets in investment portfolios was 1.1% of portfolios, after increased from the previous reading by 0.7%. Investors cited both speculation and exposure to distributed ledger technology as the main reasons for taking a stake in digital assets.

Like all asset classes, digital assets come with certain risks, the two biggest being increased regulation and government banning, although very few expect political blockers and government banning, CoinShares said. This suggests investors see regulation as the solution rather than outright prohibition.

The survey also found a sharp rise in custody concerns over digital assets, which makes sense given that the FTX (FTT-USD) crash (and its contagion effects) would have prompted the Securities and Exchange Commission to United States to intensify its review of registered titles. investment advisers who directly or indirectly have custody of clients’ crypto assets.

Vincent Gusdorf, senior vice president, head of DeFi and Digital Assets Analytics at Moodys Investors Service, expects bitcoin (BTC-USD) and ether (ETH-USD) to dominate the crypto landscape in 2023 as investors seek more established assets, he said in a recent report. Tighter financial conditions and the possibility of further fraud will hamper the recovery of crypto asset markets. However, innovation and the establishment of regulatory frameworks in multiple jurisdictions will provide a better operating environment.

Looking for an Alpha Contributor The Digital Trend has taken note of the recent rally in Bitcoin (BTC-USD) and market participants’ calls for a bottom, but remains skeptical.

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