The recent crypto market meltdown drove investor enthusiasm toward the two largest crypto assets by market cap, according to a new survey conducted by digital asset manager CoinShares.
The digital asset manager says that while investor sentiment for Bitcoin (BTC) and (ETH) improved in December of 2021, Cardano (ADA), Solana (SOL) and additional altcoins witnessed the opposite.
“During the month of December 2021, when market prices were declining sharply, investor sentiment improved for the larger digital assets Bitcoin, Ethereum and multi-asset, while sentiment declined for the smaller assets such as Cardano, Solana and other altcoins.”
Investor sentiment in the ninth-largest crypto asset by market, Polkadot (DOT), remained unchanged, according to the CoinShares Digital Asset Bi-Monthly Fund Manager Survey.
The new CoinShares survey notes that allocations to digital assets were correlated to investor sentiment. Bitcoin and Ethereum received relatively larger allocations compared to Polkadot, Cardano and Solana.
“Allocations to digital assets mirrored the growth outlook for digital assets, where allocations were minimally increased for the larger coins at the expense of altcoins.”
According to CoinShares, regulations are increasingly becoming a key concern for crypto investors.
“There has also been an almost doubling in the number of investors concerned about regulation.
Regulation has taken the top spot for the key risks amongst investors despite greater clarity on MiCA [Regulation of Markets in Crypto-assets] and the recent decision from the SEC [U.S. Securities and Exchange Commission] to allow a Bitcoin futures ETF [Exchange-Traded Fund].”
MiCA is a framework seeking to regulate crypto assets in the European Union with a view of preserving financial stability and protecting investors.
The survey polled investors who “cover $250 billion of assets under management.” The majority of the respondents live in North America as well as the European and Middle Eastern regions.
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