Institutional Investors Looking Beyond Bitcoin and Ethereum – Coinbase Exec
David Duong, head of institutional research at Coinbase, commented on institutional investment in cryptos beyond Bitcoin and Ethereum.
According to Duong, nearly half of all institutional flows on Coinbase are going toward altcoins, which suggests that institutional investors are more open to exploring cryptocurrencies beyond the top two digital assets than some people may realize.
In a live stream with crypto analyst Scott Melker, Duong explained that while Bitcoin and Ethereum still account for most institutional investment flows on Coinbase, the remaining 45% is allocated to other cryptocurrencies.
He added that while investors are paying attention to what’s happening with Ethereum and its upcoming Shanghai fork, they are also interested in exploring the broader cryptocurrency ecosystem beyond BTC and ETH.
Duong noted that market conditions for cryptocurrencies are currently uncertain due to macro factors, seasonality, and the potential for crypto assets to decorrelate from other risk assets. He suggested that the weaker period for risk assets, which occurs between when people receive their bonus payments and before tax season, may contribute to the current market conditions.
However, despite the current market uncertainty, Duong remained optimistic about the potential for cryptocurrencies, stating that the correlation between crypto and other risk assets is coming down. This suggests that cryptocurrencies may emerge as a distinct asset class with unique characteristics that make them less reliant on traditional risk factors. As such, institutional investors may be more willing to explore these assets and diversify their portfolios with cryptocurrencies beyond Bitcoin and Ethereum.