Institutional investors are orchestrating a delicate balancing act in the crypto sphere, allocating 45% of their assets to stablecoins, 35% to Bitcoin, and 15% to Ether, according to Bybit's latest report. Interestingly, client segment nearly doubled their Bitcoin holdings within the first three quarters of 2023.

Bitcoin's dominance surged amid the crypto rally in October, fueled in part by institutional traders nearly doubling their Bitcoin holdings. Conversely, Ether witnessed declining interest from institutional investors throughout 2023.

ETF Prospects and Crypto Retail Trends

The anticipation of BlackRock's spot Ether ETF application could reignite excitement, while Solana's remarkable tenfold growth since 2022's low poses a competitive challenge for Ether. A significant upgrade could potentially rekindle institutional interest in Ether, Bybit noted.

Retail traders have adopted a cautious approach to crypto by holding more stablecoins, reflecting a conservative stance towards riskier assets. Notably, altcoins form a minor part of both retail and VIP traders' portfolios, hinting at a cautious outlook influenced by the recent market turbulence.

Bybit's journey of growth extends beyond user numbers. The platform has acquired licenses in prominent regions like the UAE, Kazakhstan, and Cyprus to boost its risk management strategies and to enhance compliance with regulations. Recently, Bybit introduced TradeGPT, an AI-powered educational tool leverages real-time market data, trading analytics, and technical analysis tools.

TradeGPT serves as a mentor, offering personalized guidance and multilingual support to assist users in understanding market trends and formulating effective strategies.

Bybit's Focus on AI and Global Expansion

Bybit's foray into AI-driven tools aligns with a broader trend in the cryptocurrency realm. The integration of AI, witnessed across platforms like Crypto.com and Binance, underscores the synergy between artificial intelligence and the evolving needs of the crypto community. AI's data processing capabilities complement the industry's demand for real-time insights.

Bybit's Institutional platform enjoys a commendable position among the top three choices for professional traders eyeing cryptocurrency futures contracts. Notably, it has secured a prominent place in total BTC futures open interest, affirming its standing as a go-to destination for traders seeking lucrative opportunities in the BTC futures market.

Bybit's strategic global expansion include establishing its global headquarters in Dubai and acquiring pertinent licenses, aligning with regulatory frameworks in the UAE, Kazakhstan, and Cyprus. However, in response to evolving regulatory norms in Canada's crypto sector, Bybit opted to withdraw its operations from the Canadian market, marking a strategic shift in its global operational footprint.