Investor interest in etherium is nothing new. The second largest asset by market cap has seen further support with the rise of decentralized financing of its ecosystem. Ethereum’s applications are the main driving force behind the rise of cryptocurrencies and institutional and individual investors alike see the No. 1 currency increasing bitcoin assets in the coming years.
A recent CoinShares survey has echoed the sentiment that has been held by investors in the market for some time. This has shown that Etherium believes that the number of investors to surpass Bitcoin is double the number of investors who are bright on the rise of Bitcoin. Lately, investors have been moving away from their bitcoin position in favor of Ethereum, and the CoinShares survey shows that this may just be the beginning.
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Investors want Etherium
The CoinShares survey sheds light on investor attitudes around the market’s top crypto projects. When asked, 42% of respondents said they saw the most attractive growth outlook for Etherium. Although 18% said they have seen an attractive growth outlook for Bitcoin. The survey found that Etherium was considered the highest growth project in the coming years.
ETH price settles at $3,600 | Source: ETHUSD on TradingView.com
It doesn’t snatch anything from Bitcoin though. Blockchain structuring has allowed Ethereum to be one of the most important investment spots in crypto; Defy market. With the introduction of smart contracts on the Bitcoin blockchain network, Ethereum and Solana are ready to compete in this space against the likes. The usefulness of crypto-assets is simply to extend beyond its monetary policy.
Investors disclose the reasons for investing
When asked what is the biggest motivation for investing in cryptocurrencies, the top answer is surprisingly not the value or even diversity of assets. 35% of respondents said they were investing in the market because the assets were speculative. Only 25% said they used cryptocurrency as a way to diversify their portfolio. With an investment of about 15% for the value of the assets.
Respondents further stated that regulation, restrictions and instability are the biggest barriers to investing in the crypto market. When respondents were asked about the key risks associated with digital assets, the regulations also topped the list. A combined 58% said government bans and regulations are currently the biggest threat to the digital asset market.
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Despite growing interest from institutional investors, individual investors still dominate the cryptocurrency market. Investors 5% of investors say they have invested in the market individually. Although Europe and the Middle East have the largest amount of residential funds, about 70% say their funds were settled in the region.
Featured image from Forkast, chart from TradingView.com