Bitcoin Constitutes One-Third of Investor Crypto Holdings in 2025

A recent report from Bybit indicates that Bitcoin’s presence in cryptocurrency portfolios is on the rise, primarily fueled by a more innovation-friendly regulatory environment for crypto in the United States and increasing institutional adoption, spurred by the introduction of spot Bitcoin exchange-traded funds (ETFs).

As of May 2025, Bitcoin (BTC) accounts for approximately one-third of investor crypto portfolios, specifically 30.95% of total digital asset holdings. This represents a notable increase from 25.4% in November 2024, establishing Bitcoin as the single largest asset held by cryptocurrency investors. In contrast, the ratio of Ether (ETH) holdings to Bitcoin holdings significantly declined to a 2025 low of 0.15 by the end of April, before recovering slightly to 0.27. This implies that for every dollar invested in Ether, investors typically hold around four dollars in Bitcoin.

Institutional Inflow and Market Performance

Bitcoin has demonstrated superior performance compared to major global assets since the inauguration of U.S. President Donald Trump, including traditional markets like stocks, equities, treasuries, and precious metals. This strong performance has generated considerable interest in Bitcoin as a portfolio diversification tool capable of delivering additional returns.

The robust returns of Bitcoin have ignited a new wave of institutional engagement. The number of corporations holding Bitcoin on their balance sheets has almost doubled since June 5, now exceeding 244 companies, a significant jump from 124 just weeks prior, according to BitcoinTreasuries.NET.

Currently, a total of 3.45 million Bitcoin is held in corporate treasuries. Public companies alone account for 834,000 BTC, representing 3.97% of Bitcoin’s total supply. Furthermore, over 1.39 million Bitcoin, or 6.6% of the total supply, is held through spot Bitcoin ETFs.

This escalating institutional adoption suggests a trajectory that could see Bitcoin’s value reach $1.8 million by 2035, as the leading cryptocurrency potentially begins to compete with gold’s estimated $22 trillion market capitalization. Joe Burnett, director of market research at Unchained, discussed this outlook, citing a “parallel model” that supports such a valuation.

Shifting Retail Investor Behavior

Despite Bitcoin’s strong momentum and growing institutional embrace, a contrasting trend is observed among retail traders. Their Bitcoin allocations have decreased by 37% since November 2024, falling to just 11.6% of their portfolios, which is approximately half the percentage held by institutional investors.

This decline in retail Bitcoin holdings appears to be driven by a shift towards altcoins, particularly those with strong prospects for ETF approvals, such as XRP. The Bybit report notes a doubling of XRP holdings in portfolios, from 1.29% in November 2024 to 2.42% as of May 2025, largely influenced by rising expectations for XRP spot ETF approval. This suggests that retail investors are seeking opportunities in alternative cryptocurrencies, particularly those perceived to have favorable regulatory pathways in the near future.