The flow of capital from institutional investors continues to enter the crypto market. However, the vast majority of this money goes directly to Bitcoin, marginalizing the other cryptocurrencies in the ecosystem. For this reason, the analyst known on Twitter as WhalePanda, comments in the Tweet of the day that institutional investors bet on Bitcoin and not on the alts:
Institutional investors love Bitcoin
For a long time, in the world of cryptocurrencies it was believed that institutional investors did not enter the cryptocurrency market due to a lack of financial products for them. Therefore, companies like Bakkt concentrated all their efforts on creating products such as physical futures contracts on Bitcoin. With which it was hoped to attract these large investment firms.
However, the company that really nailed it to attract institutional investors was Grayscale. A company dedicated to saving investors the hassle of buying and storing cryptocurrencies like Bitcoin and Ethereum. Performing this work, serving as an intermediary between investment firms and the crypto market in exchange for a commission.
This has opened the doors for hundreds of millions of dollars to enter the world of cryptocurrencies. With institutional investors entering the Bitcoin market en masse. In what for analysts like the one known on Twitter as Whale Panda, it is a clear sign of the superiority of Bitcoin over other cryptocurrencies. Well, although Grayscale offers opportunities to invest in altcoins, these are not as popular as BTC:
«We are seeing a lot of institutional investors entering this space and the only thing they care about is #Bitcoin. For an alt season you need retail “investors” (gamblers) looking for “the next Bitcoin.” These people will come only when Bitcoin reaches a new record price».
Thus, Whale Panda would diminish the importance of altcoins for the crypto world. Saying that only those who bet instead of investing in the crypto market, could be interested in acquiring these cryptocurrencies. Continuing like this with the permanent dispute between the defenders of Bitcoin, and those who believe in a world with diversity of cryptocurrencies.