- Institutional investors shift from stablecoins to altcoins on Bybit.
- Altcoin trading volumes increased, driving market dynamics.
- Regulatory clarity boosts institutional altcoin interest.
Bybit’s Q3 2025 report reveals a substantial shift by institutional investors from stablecoins to altcoins like SOL and XRP on the platform.
This move reflects changing diversification strategies and regulatory clarity, impacting market dynamics with rising altcoin trading volumes and decreasing stablecoin allocations.
The recent shift among institutional investors from stablecoins to altcoins marks a significant change in the cryptocurrency landscape according to Bybit’s Q3 2025 report. Altcoins such as SOL, XRP, ADA, and AVAX showed increased trading volumes and allocations.
Bybit, led by CEO Ben Zhou, has seen substantial portfolio reallocations from professional investors, diversifying away from traditional assets like Bitcoin and stablecoins. Institutional clients have shown increasing interest in new protocols and altcoins.
The recent shift towards altcoins such as SOL, XRP, ADA, and AVAX underscores a changing landscape where institutional investors are seeking diversification and regulatory clarity. — Ben Zhou, CEO and Co-Founder, Bybit
Immediate effects were observed with a 23% increase in Bybit’s assets under management to $27.4 billion during Q3, indicating a growing confidence in altcoins. Altcoin holdings rose from 28% to 36% of total assets, reflecting this shift.
The financial implications are clear; a notable 37% of institutional clients increased altcoin exposure. This decrease in stablecoin holdings indicates evolving strategies aimed at leveraging altcoin potential amidst shifting market conditions and regulatory landscapes.
This strategic move by investors suggests a long-term reorientation towards Layer-1 technologies and associated projects. Enhanced regulatory clarity has facilitated this transition, supporting altcoin integration in institutional portfolios.
Insights into the potential effects point to a more stable trading environment for altcoins, with observed decreases in volatility and increased liquidity. Such trends underline the maturing nature of altcoin markets and a shift in investment philosophy.
