- Bitcoin dominates investor sentiment, with 7% growth since July and nearly double the preference over other digital assets.
- Institutional investors remain cautious, but family offices and hedge funds keep digital assets in larger portfolios.
- Regulatory hurdles slow new investments, with investors citing policy concerns despite recent U.S. ETF approvals.
CoinShares’ most recent Fund Manager Survey shows that the sentiment towards Bitcoin has increased exponentially and the cryptocurrency is currently the new leader. Growing by 7% since July, Bitcoin is considered by almost twice as many respondents to hold the most favorable growth potential among other digital assets. This strong preference is in stark contrast with Ethereum, who has seen its support drop by half to its current lowest point of the year 2021.
Source: Coinshares
Solana continued to hold its ground in the broader altcoin market, with 9.5% of respondents saying it was a good investment. Although, 10% of the participants shared their doubts as to whether any digital asset has a strong growth potential at the moment. Despite such diverged opinions, investments in digital assets have been cut back considerably, falling from 1.7% to 1% on average. The change is in line with the rotation out of risk assets into fixed income as inflation moderates.
Bitcoin’s Institutional Appeal Grows
This survey, which achieved the highest-ever level of participation from large institutional managers, shows that there is still some degree of scepticism among the old guard. Some argue that digital assets have no strong fundamentals. However, other types of investors, including family offices and hedge funds, are also more confident and have the largest share of digital assets in their portfolios. The only asset with which the allocation can be increased is Bitcoin, as 5% of the respondents own Bitcoins.
Still, the allocation levels of Ethereum remain almost the same, even though its sentiment is negative, while Solana, with the positive sentiment, has not experienced significant portfolio changes. Total altcoin exposure has not changed much and continues to be low, which supports BTC dominance. The aim of investing in digital assets has remained the same to get access to distributed ledger technology, while the second most important reason is diversification.
Regulatory Barriers Rise
New investment has been slowed down by the growing regulatory issues. Although the recent approvals of US ETFs have enhanced accessibility, the numbers of investors continue to rise who cite regulation as the greatest barrier to digital asset investment. This increase in the degree of caution reflects investors’ concerns about the legal framework and potential changes in the policy, which remain the main risks for current investors.
Source: Coinshares
While there is constant shift in policies, the world is still trying to make sense of the recent decisions of the U.S. Federal Reserve, especially the rate cut that happened in September. The level of opinionated investors is rising, and the number of the indifferent investors is decreasing. This polarity shows that investors are increasing their attention to the changes in the regulatory and economic environment
