Leading crypto asset manager CoinSharesshared the results of a recent survey.
According to CoinShares, investors are reducing their investments in altcoins such as Ripple (XRP) and smart contract-enabled blockchains Cardano (ADA) and Polkadot (DOT), while Bitcoin (BTC) and EthereumIt started to give more weight to (ETH) again.
According to the survey, the price fluctuations experienced in the first two months of the year caused a change in the behavior of institutional investors.
“The price volatility experienced in the first two months of this year has been a factor in investors’ perceptions, albeit at the expense of smaller capitals than altcoins such as Polkadot, Cardano and Ripple. Bitcoin (BTC) and caused it to return to Ethereum.”
The CoinShares survey also revealed that sentiment in Ethereum competitors such as Solana (SOL), Avalanche (AVAX), Cosmos (ATOM) and Terra (LUNA) continues to improve.
Sentiment towards Solana continued to develop as altcoins in the “Other” category grew, especially Avalanche, Cosmos and Luna.”
According to the results of the survey, investors prefer to invest more in cryptocurrencies that they consider valuable in the new asset class, while maintaining the aim of diversifying their portfolios.
“Diversity has become the main reason why investors add positions to digital assets. While speculation remains a major reason to invest in digital assets, it has been on a downward trend since December 2021 and an increasing number of investors are seeing these assets as good value.”
The CoinShares survey also revealed that the biggest risk in the eyes of investors is the ban on crypto assets by governments.
“This survey was conducted in March 2022, when concerns over a Proof of Work (PoW) ban were raised due to a vote in the European Union parliament. Also, President Biden’s executive order was awaited.
This resulted in a political and government ban at the top of the list of key risks. However, a PoW ban was not enforced, and the executive order resulted in various government departments instructing the digital assets to further review.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.