The digital assets investing firm Coinshres conducted a new survey on cryptocurrency in the month of May 2022, which was conducted among investors managing approximately $200 billion worth of assets. The survey also reveals that three crypto-assets named, Cardano, Polkadot, and XRP are attracting investment fund manager capital away from Ethereum (ETH).
This survey further reveals that the digital asset investment firm XRP, Cardano (ADA), and the native token of Polkadot (DOT) are attracting more investor dollars as allocations to Ethereum move in opposite directions, says the report.
Quoting: “While positions on Bitcoin have changed little, investors are increasingly adding to altcoins. The survey highlights increasing allocations to Polkadot, Cardano, and XRP at the expense of Ethereum.”
Further to the bi-monthly survey of CoinShares, a little over 20% of the investors has allocated to Ethereum around 25% registered during the previous March survey. When it comes to XRP the number of investors allocating funds to it has risen to about 6% from around 4% recorded in the March survey.
In consideration with investors to digital assets, the Cardano has more than doubled from around 5% to about 12% investors, and Polkadot has found a hike in its investors from around 9% to 13%. The CoinShares survey conducted in the month of may says, the smart contract blockchain Solana (SOL), has seen a decline in the percentage of investors allocating to it from around 4% to 1%.
The reason for investing in digital assets includes diversification and speculation, the survey further reveals. “We saw a big rise in investors adding to positions for speculative reasons, having risen from 20% to 27%. Diversification remains a key reason for investing in digital assets, although it has declined, likely due to Bitcoin’s correlation to tech stocks and skepticism over its true diversification merits.”