• 60% of institutional investors are bullish on Ethereum and believe it has a better growth outlook in 2023.
• Bitcoin is also seen as a potential investment, while other coins that are attracting institutional investors are Polkadot, Cardano, and XRP.
• Speculative interest and exposure to distributed ledger technology are two main reasons for the increased interest in Ethereum.
Institutional investors are increasingly seeing Ethereum as a viable investment option in 2023. The second largest cryptocurrency by market cap, worth nearly $190 billion, is gaining traction as more investors are viewing it in a positive light. This is evidenced by a survey published by digital assets manager CoinShares in January 2023, which revealed that 60% of respondents from major wealth majors, family offices, hedge funds, and financial advisors believe Ethereum will be a better investment in 2023 than was the case going into the third quarter last year.
A comparison of the survey results from January 2023 with those published by CoinShares in October 2022 shows that the bullish sentiment around Ethereum has increased by 20%. This increase in interest is mainly attributed to speculative interest and exposure to distributed ledger technology. Ethereum is the most popular platform for developing decentralized applications (dApps) and is the most widely used blockchain technology in the world.
Bitcoin is also seen as a potential investment, with its market cap as of 27 January 2023 standing at over $482 billion. Other coins that are attracting institutional investors are Polkadot, Cardano, and XRP. Polkadot is an interoperable blockchain network, Cardano is a smart contracts platform, and XRP is a digital asset designed for payments and money transfers.
The increasing interest in Ethereum is a sign that the cryptocurrency is being taken more seriously by institutional investors. This could lead to further growth for the cryptocurrency in the coming months and years, as more investors are likely to be attracted to its potential. Moreover, the increased interest in Ethereum could also lead to increased interest in other cryptocurrencies, such as Bitcoin, Polkadot, Cardano, and XRP.