Large investors managing approximately $200 billion worth of assets are moving away from the second-largest cryptocurrency Ethereum ($ETH) and are instead betting on three other altcoins: Cardano ($ADA), Polkadot ($DOT), and $XRP.
That’s according to CoinShares’ Digital Asset Bi-Monthly Fund Manager Survey, which found that investors have been steadily moving away from Ethereum since March, while allocating funds to these three cryptocurrencies, which appear to have potential bullish catalysts in the near future.
The report further found that positions on Bitcoin “have changed little” as investors “are increasingly adding to altcoins.” It found that little over 20% of investors allocated to Ethereum down from around 25% during the previous survey in March.
On the other hand, as Daily Hodl reported, it saw investors allocating funds to Cardano more than double from 5% to 12%, and those allocating to XRP rise from about 4% to 6%. Similarly, those betting on Polkadot rose from 9% to around 13%.
The survey notably also found a significant drop in investors allocating to Ethereum competitor Solana ($SOL), from 4% to 1%, and noticed an increased rise in investors adding to positions for speculative reasons.
The report adds that, nevertheless, diversification remains “a key reason for investing in digital assets, although it has declined, likely due to Bitcoin’s increased correlation to tech stocks and skepticism over its true diversification merits.”
Data has also shown that ADA whale transactions have shot up to a 4-month high after the price of the cryptocurrency plunged to a bottom at $0.40 earlier this year. Whales were seemingly buying the dip ahead of an upcoming hard fork that will improve the network’s performance. That hard fork, known as the Vasil hard fork, is set to deliver a “massive improvement” to the network.
Meanwhile, the price of XRP has been negatively affected by Ripple co-founder Jed McCaleb, who has sold over 450 million tokens so far this year and still has over 220 million on his wallet.
XRP is also negatively being affected by a lawsuit brought on by the U.S. Securities and Exchange Commission (SEC) against Ripple, in which the regulator alleged the firm and two of its executives “raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.”
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