- Institutional investors surveyed by Coinbase and EY-Parthenon showed stronger preference for XRP (34%) compared to Solana (30%), with Bitcoin and Ethereum remaining the most widely held cryptocurrencies.
- Despite most institutions holding only one or two cryptocurrencies beyond Bitcoin and Ethereum, 68% expressed interest in single-asset crypto ETFs.
- Regulatory uncertainty remains a major concern for 53% of institutional investors, with almost half seeking clarity on crypto’s classification as commodities versus securities.
Institutional investors showed stronger preference for XRP over Solana in early 2024, according to a joint report published Tuesday by Coinbase and EY-Parthenon. The survey of 352 global institutional investors revealed that 34% had allocated funds to the Ripple Labs-associated token compared to 30% for Solana, with approximately 25% also holding positions in Dogecoin.
While Bitcoin and Ethereum maintained their dominance as the most widely held digital assets among institutional investors, the report highlighted that most respondents typically limited their alternative cryptocurrency exposure to just one or two assets beyond these market leaders. This allocation pattern persists despite U.S. investors now having easier access to Bitcoin and Ethereum through launched spot ETFs.
The survey, which concluded on January 24, revealed that investment vehicle preferences are trending toward ETF-like structures, with 29% of institutional investors opting to hold digital assets directly in wallets. Despite numerous asset managers filing applications for XRP and Solana ETFs, most traditional investors currently have limited options for gaining exposure through conventional brokerage accounts.
Interestingly, the report suggests that geographical location had minimal impact on altcoin allocation strategies among institutional investors. While U.S. ETF approvals have generated significant market excitement, the report’s authors indicated that these investment vehicles may not substantially alter existing ownership patterns. Nevertheless, 68% of respondents expressed likely interest in single-asset crypto exchange-traded products, specifically mentioning XRP and Solana as examples.
Since the survey’s completion, market dynamics have shifted considerably. Solana has relinquished its post-election gains, while XRP continues trading significantly higher than its Election Day values. Analysts attribute XRP’s stronger performance partly to the current administration’s crypto-friendly stance, which has particular significance for XRP given the asset’s previous existential threats from SEC litigation against Ripple Labs.
The regulatory environment remains a primary concern for institutional crypto investors. The SEC has adopted a more collaborative approach to crypto firms under the current administration, yet 53% of survey respondents identified regulatory uncertainty as a significant worry. Nearly half (49%) specifically highlighted the classification of digital assets as commodities versus securities as the most critical area requiring clarity, while 50% cited crypto custody rules as their top regulatory concern.
Regulatory developments continue to evolve, with the SEC establishing a Crypto Task Force to develop clearer guidelines alongside Congressional consideration of a crypto markets structure bill that would shift industry oversight to the Commodity Futures Trading Commission.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- CME Solana Futures Debut Falls Short of Bitcoin and Ethereum with $12.3 Million in First-Day Volume
- US Rep. Ro Khanna Expects Stablecoin and Crypto Market Structure Bills to Pass This Year
- Siemens Cre8Ventures Partners with Minima Blockchain for Secure Digital Twin Marketplace
- Easy Crypto to Merge with Swyftx, Creating Australasia’s Second-Largest Crypto Platform
- ICP Launches ‘Coulomb’ Update With New Web-Based IDE Tool For Developers
