Despite a prolonged market downturn, cryptocurrency investors are using the price decline as a buying opportunity and diversifying beyond Bitcoin and Ethereum, according to Robinhood‘s crypto chief Johann Kerbrat. Data shows investors are also increasingly using their tokens for activities like staking, while institutional players focus on top assets. However, overall market sentiment remains in “Extreme Fear,” and U.S. Bitcoin ETFs have seen significant outflows.
Cryptocurrency investors are increasingly exploring assets beyond the top three as the market downturn continues. Robinhood head of crypto Johann Kerbrat stated that customers see the decline as “an opportunity to buy the dip.”
Kerbrat noted they are diversifying widely, not just focusing on the largest assets. This signals growing comfort with crypto’s volatility as an asset class.
The trend contrasts with recent institutional perspectives. Coinbase Asset Management president Anthony Bassili said in November that beyond Bitcoin and Ethereum, the market is “very unsure as to what’s the next asset.”
Bassili added there is a “very, very clear view” on prioritizing Bitcoin first, then Ethereum. Meanwhile, MidChains CEO Basil Al Askari observed institutions entering with large trades into predominantly top-20 assets.
Al Askari described this cautious approach as “baby steps.” He believes it is possible for large funds to eventually build teams for riskier strategies.
Kerbrat also reported a shift toward active token use on his platform. He said staking has gained strong traction since its December launch.
More crypto holders are now exploring decentralized finance despite market uncertainty. “It’s been pretty fun to see, to be honest. It’s always surprising,” Kerbrat remarked.
This activity occurs amidst weak overall crypto sentiment. The Crypto Fear & Greed Index has remained in “Extreme Fear” since early February.
Concurrently, U.S. spot Bitcoin exchange-traded funds have posted five consecutive weeks of net outflows. Investors have pulled roughly $3.8 billion from these products over that period.
