Ethereum Bulls: Institutional Investors Eye Growing Crypto Potential
• 60% of institutional investors are bullish on Ethereum, believing it has a better growth outlook in 2023.
• Bitcoin is also seen as a cryptocurrency with huge potential, while other coins attracting institutional investors are Polkadot, Cardano and XRP.
• Speculative interest and exposure to distributed ledger technology are the main reasons for increased interest in Ethereum.
Institutional investors are increasingly bullish on Ethereum, the second largest cryptocurrency by market cap, with its market worth nearly $190 billion. According to the latest survey results published by digital assets manager CoinShares, bullish sentiment around the top altcoin by institutional investors has increased by 20% since the last survey in October 2022. The asset manager’s report states that 60% of respondents from major wealth majors, family offices, hedge funds and financial advisors, believe Ethereum has a better growth outlook in 2023.
Speculative interest and exposure to distributed ledger technology are the main reasons for increased interest in Ethereum. With its smart contracts, decentralized finance (DeFi) applications, and non-fungible tokens (NFTs), Ethereum has become a popular tool for investors to invest in new and emerging technologies. The cryptocurrency has also seen a surge in activity due to its use for decentralized finance (DeFi) and non-fungible tokens (NFTs). Ethereum’s DeFi applications have enabled users to access a wide range of financial services, from trading and lending to interest-bearing savings accounts.
Apart from Ethereum, Bitcoin is also seen as a cryptocurrency with huge potential. The leading cryptocurrency by market cap still remains the king of the crypto world and its market cap as of 27 January 2023 stood at over $482 billion. Other coins attracting institutional investors are Polkadot, Cardano and XRP. Polkadot is a blockchain protocol that enables the development of applications on different blockchains and is designed to increase interoperability between different blockchains. Cardano is an open source blockchain platform designed to enable developers to build and deploy decentralized applications (dApps). XRP is the native digital asset of the XRP Ledger, a distributed ledger technology (DLT) developed by Ripple.
Overall, institutional investors are increasingly bullish on Ethereum, with its potential for speculative gains and exposure to new and emerging technologies. The cryptocurrency’s use for DeFi and NFTs has also been a major factor driving its growth. With the growing number of institutional investors, Ethereum is likely to continue its growth in the coming months.
