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As the crypto market surges ahead of several important macro-financial and Fed-related dates this week, one prominent regular survey finds Ethereum (ETH) the coin that larger investors are focusing on. is shown.
Ethereum, the second-largest cryptocurrency by market capitalization, is showing a “dramatic uptick in investor sentiment,” according to the latest report from CoinShares, one of Europe’s largest digital asset investment and trading groups. .
A record 60% of survey respondents indicate that ETH has the most attractive growth prospects among cryptocurrencies interested in investing, including Bitcoin (BTC).
The survey was conducted between December 29, 2022 and last week, January 23. It consisted of 43 responses from investors covering US$390 billion worth of assets under management.
According to CoinShares data, this type of investor currently “has expressed little opinion on other digital assets” other than BTC and ETH.
“Despite worsening sentiment from Bitcoin to Ethereum, many of our survey respondents invested in both,” read the report, adding:
“This appears to have come at the expense of altcoin competitors to Ethereum, such as Cardano and Solana.”
Ethereum’s Shangahi Upgrade – Bullish?
For those of you who don’t know, Ethereum has a pretty big story and very likely contributed to the recent market moves. And that’s the protocol’s next upgrade, due in March, called Shanghai.
As Ethereum’s “merge” moved from a Bitcoin-like Proof-of-Work protocol to Proof-of-Stake, early stakers/validators on the updated blockchain sought to secure the network and create staked ETH tokens with yields. have not been able to pull out yet. This will change with the Shanghai update.
Wait, more ETH available for sale on the open market is bearish, isn’t it?
About 14% of the total ETH supply has been staked and will be unstakeable after the Shanghai fork. This makes some people bearish.
However, that ETH will not hit the market right away. You still have to go through the withdrawal queue.
It takes time to peel off. pic.twitter.com/5iY4S3rMIz
— Jack Niewold 🫡 (@JackNiewold) January 26, 2023
Liquid staking derivative projects such as Lido DAO, Rocket Pool, and related infrastructure plays. SSV – We certainly benefited from this story. You can read more about this in our recent chat with Apollo Crypto.
Regulation seen as a solution, not a problem
CoinShares’ report revealed some other eye-popping bullish highlights. This includes:
• The weighting of digital assets in investment portfolios during the study period accounted for 1.1% of the portfolio, up from 0.7% in the previous survey.
• Investors cited both “speculation and exposure to distributed ledger technology” as the main reasons for the increased interest in the high end of the crypto sector.
• Despite last year’s FTX crash, many of these millionaire clients are asking their fund managers to add crypto positions. Also, fewer people see cryptocurrencies as a “reputational risk”.
• On top of that, regulatory concerns still exist for the industry, but most of the investors surveyed don’t seem to expect the worst on that front. A political block from crypto haters like Senator Elizabeth Warren, or worse, a U.S. government ban.
According to CoinShares, this sentiment suggests that investors see regulation as “a solution rather than an outright ban.”
Speaking of sentiment, see how the Fear & Greed Index tracks in today’s market. Quite different from where I was tracking it a month or so ago…
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