Crypto investors are increasingly exploring beyond the top three cryptocurrencies as the market downturn continues, according to Robinhood’s chief cryptocurrency officer, Johann Kerbrat.
“I think our customers see this as an opportunity,” Kerbrat told Cointelegraph during an exclusive interview, adding that they see it as “a chance to buy the dip.”
“So we’re actually seeing a lot of clients continuing to trade cryptocurrencies and diversifying their trading, not just across the top two or three assets, but it’s actually going quite broadly,” he said, referring to the two largest cryptocurrencies by market capitalization, Bitcoin (BTC) and Ether (ETH).
It signals that investors are potentially becoming more comfortable with cryptocurrencies as an asset class, including their volatility and market fluctuations.
Investors have a “very clear view” on Bitcoin and Ethereum
This comes just a few months after Coinbase Asset Management CEO Anthony Bassili told Cointelegraph in November that the average investor still hasn’t reached a clear consensus on what third crypto assets beyond the top two require stern attention.
“The market is not sure what the next asset is that they will want to own,” he said, adding that Solana (SOL) is “maybe” the third asset on the radar. Bassili said at the time that the community had a “very, very clear view” that Bitcoin was the priority, followed by Ethereum.
Institutional crypto asset trading platform MidChains CEO Basil Al Askari told Cointelegraph that “we are seeing full-scale asset managers coming in with very large block trades, mainly covering the top 20 assets.”
“Not necessarily in smaller cap altcoins, not necessarily in DeFi or yield products,” Al Askari said, adding, “these are small steps.”
“I don’t think it’s impossible for large investment managers and funds to build dedicated teams around strategies that perform different tasks along the risk curve, so I think it’s very possible,” Al Askari said.
Cryptocurrency holders are looking for operate cases
Meanwhile, Kerbrat said he is also seeing more cryptocurrency holders on the platform who are not only holding their tokens but also actively using them.
Kerbrat said staking has gained “a lot of momentum” since Robinhood introduced the feature in December and that more cryptocurrency holders are now exploring decentralized finance (DeFi) despite market uncertainty.
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“Honestly, it was pretty cool to see it. It’s always surprising,” Kerbrat said.
This comes as general sentiment towards cryptocurrencies fades, with Crypto Fear & Greed Index remaining on “Extreme Fear” since early February.
Meanwhile, U.S. Bitcoin spot funds (ETFs) have seen five consecutive weeks of net outflows, with investors pulling out about $3.8 billion from the products during that period.
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