For institutional investors, Ethereum is more attractive than Bitcoin! Why?

According to a new report from the Bybit exchange, institutions are allocating their capital first to Ethereum (ETH) and then to Bitcoin (BTC).

This is in contrast to the situation of retail investors who allocate more of their portfolios to Bitcoin. According to the Baybit report, institutions have allocated about 80% of their portfolios to Bitcoin and Ethereum due to the upcoming Dencun update.

Meanwhile, retail users are less focused on these assets and invest in other altcoins. Ethereum, which is currently priced above $3,200, has experienced a 33% growth since the beginning of the year and has outperformed Bitcoin.

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This impressive performance stems from factors such as the deflation of its supply since the consensus mechanism changed to Proof of Stake (PoS), the decrease in ETH token inventory on exchanges, and the increase in the amount of Ethereum staked.

The recent report also cited the growth of Ethereum's DeFi ecosystem and Layer 2 networks, as well as the Duncan update, as key catalysts for ETH's strong performance compared to Bitcoin.

In this way, the situation has changed a little since the previous Baybit report in December. At that time, most organizations and institutions were converting their holdings to Bitcoin due to the nearing approval of spot Bitcoin ETFs.