Bitcoin has reclaimed its dominance in crypto investor portfolios this year, accounting for nearly one-third of total holdings, according to new data from Bybit Research.
The surge in allocation is largely attributed to rising institutional interest, favorable U.S. regulations, and the growing popularity of spot Bitcoin exchange-traded funds (ETFs).
As of May 2025, Bitcoin represents 30.95% of total investor crypto portfolios—up from 25.4% in November 2024, making it the largest single asset held across the digital asset landscape.
Institutions In, Retail Out
While institutional investors have continued to increase their exposure to Bitcoin, retail traders appear to be moving in a different direction. The report shows that retail Bitcoin holdings have dropped 37% over the same period, now making up just 11.6% of portfolios. This decline suggests that many retail investors are rotating into altcoins and stablecoins, particularly those with growing ETF approval prospects, such as XRP.
The percentage of XRP in investor portfolios has nearly doubled, climbing from 1.29% to 2.42% between November and May. Bybit attributes the shift to rising expectations of a Ripple spot ETF, which analysts believe may be approved ahead of a similar product for Solana (SOL).
Meanwhile, Solana holdings have declined sharply, down 35% since October 2024, dropping from 2.72% to 1.76%, as institutional capital gradually pivots toward XRP.
Bitcoin’s Stronger Grip on Market Sentiment
The report also highlights a significant drop in the Ether-to-Bitcoin ratio, which hit a low of 0.15 in April before recovering to 0.27. This means that for every $1 in Ether, investors are now holding approximately $4 in Bitcoin.
The momentum behind Bitcoin is not limited to portfolio allocations. Following the inauguration of U.S. President Donald Trump, Bitcoin has outperformed all major asset classes, including equities, bonds, and precious metals. This outperformance has made Bitcoin increasingly attractive as a portfolio diversifier, particularly for institutions seeking asymmetric upside in a volatile macroeconomic environment.
Bitcoin on Corporate Balance Sheets
Institutional enthusiasm is also visible in corporate treasury behavior. According to BitcoinTreasuries.net, over 244 companies now hold Bitcoin on their balance sheets, nearly doubling from just a few weeks ago. Together, these entities control around 3.45 million BTC, including 1.39 million BTC held via spot ETFs.
This growing adoption has prompted bold long-term forecasts. Joe Burnett, Director of Market Research at Unchained, believes Bitcoin could reach $1.8 million by 2035, eventually rivaling gold’s $22 trillion market cap.
“There are two models I admire,” Burnett said during Cointelegraph’s Chainreaction show. “One is the parallel model, which suggests Bitcoin will be about $1.8 million in 10 years.”
A Portfolio Shift with High Stakes
As institutions lean further into Bitcoin and reposition around promising altcoins like XRP, the overall crypto market is seeing a reshaping of capital flows.
Bitcoin may be re-establishing its status not just as digital gold, but as the backbone of the modern crypto portfolio, particularly as regulated investment vehicles like ETFs gain momentum.
For now, the trend is clear: the smart money is doubling down on Bitcoin.
