A report by Coinbase and EY-Parthenon revealed that institutional investors were more likely to own XRP than Solana in January. Bitcoin and Ethereum were widely held, with 34% of respondents owning XRP and 30% owning Solana. The majority of investors held one or two cryptocurrencies beyond Bitcoin a...
According to a recent report by Coinbase and EY-Parthenon, institutional investors have shown a preference for XRP over Solana in the cryptocurrency space. The report, based on a survey of 352 respondents worldwide in January, revealed that while Bitcoin and Ethereum remained popular choices, with 34% and 30% ownership respectively, XRP was owned by 34% of investors compared to 30% for Solana. Interestingly, around 25% of institutional investors also held Dogecoin.
The majority of investors surveyed held one or two cryptocurrencies beyond Bitcoin and Ethereum, with many expressing interest in products resembling ETFs for holding crypto as an underlying asset. While excitement around ETF applications persists, the report suggested that their impact on ownership trends may be limited. However, most institutions stated a preference for products resembling ETFs when it comes to registered vehicles holding crypto.
Despite the geographical location of the investors, the report found that it had little impact on which altcoins they had allocated to. While ETF applications have generated buzz, their influence on ownership trends may not be significant. However, a notable 68% of respondents expressed interest in investing in new crypto exchange-traded products that track a single asset.
Following President Donald Trump's inauguration, the crypto landscape saw changes that could potentially affect certain assets. Analysts believe that Trump's favorable stance towards crypto may have a greater impact on XRP than Solana due to regulatory concerns, particularly surrounding the U.S. Securities and Exchange Commission's lawsuit against Ripple Labs over XRP sales.
Regulatory clarity and crypto custody rules were highlighted as crucial areas for institutional investors, with 53% of respondents expressing concern over the "uncertain" regulatory backdrop in the crypto space. In particular, the classification of digital assets as commodities versus securities and crypto custody rules were cited as important for clarity.
It is worth noting that the SEC has established a Crypto Task Force to work towards clearer rules, and lawmakers are considering a crypto markets structure bill that would give the Commodity Futures Trading Commission oversight over the industry. These developments indicate ongoing efforts to address regulatory concerns and provide a more stable environment for institutional investors in the crypto space.