Binance Research recently published their second Institutional Insights Report, highlighting the structure of the investments, trading strategies, and approach to stablecoins. The report analyzed the positions of 76 participants speaking English & Mandarin Chinese, primarily from investment firms, funds, and institutions.
Fat Cats Go 'All-In'
One of the most interesting outcomes from the recent report is the structure of investment portfolios held by VIP and institutional clients. It was disclosed that 54% of respondents kept their cryptoasset portfolio between 1-10 coins. While the majority invested in a broad range of asset classes such as equities, currencies, fixed-income products, real estate, and commodities (including gold), 35% of respondents were crypto-focused with more than 80% allocated to crypto assets.
Thus, we can see that one in three major investors is highly "crypto-focused". New classes of rich people, whose portfolios depend on the volatility and unpredictability of crypto market, are being formed right now.
Positive Sign for BTC Price?
Obviously, the question about their approach to Bitcoin (BTC) and stablecoins were also raised within the framework of their research. It came as no surprise that the rich still believe in BTC. Institutional and VIP clients are expecting BTC to maintain its market dominance (69%) through the end of 2019. Binance Research added that this result "echoes their fear of the altcoin market, losing any interest from retail participants".
Among the stablecoins, USDT remained the most widely utilized (40%) because it offers greater liquidity and higher market capitalization than its peers. The report also found that BUSD and USDC were less popular from the rest of the pack.
Should we seek some insight from the rich? Explain your views on Twitter!
Alex Dovbnya
Gamza Khanzadaev
