According to a new report from Bybit, Bitcoin exposure within cryptocurrency portfolios is increasing significantly, driven by U.S. crypto regulations favoring innovation and heightened institutional adoption catalyzed by the introduction of spot Bitcoin exchange-traded funds (ETFs).

Record Allocation Levels

Bitcoin accounts for approximately one-third of investor portfolios as of May 2025, making up 30.95% of total assets—marking a significant climb from 25.4% held in November 2024. This positions Bitcoin as the predominant asset class among cryptocurrency investors.

Shift Away from Altcoins

The ratio of Ether (ETH) to Bitcoin holding plunged to a 2025 low of 0.15 at the end of April, recovering slightly to 0.27 currently. This indicates that for every dollar invested in Ether, investors hold roughly four dollars worth of Bitcoin.

Concurrently, the share of Bitcoin in portfolios has surged while the allocation to other major assets like Solana (SOL) has fallen. SOL holdings dropped 35% since October 2024, reaching 1.76% as of May.

Institutional Surge

Bitcoin’s robust performance has spurred a wave of institutional adoption. Corporate Bitcoin holding companies have nearly doubled in number, with over 244 companies now holding the cryptocurrency on their balance sheets—up from 124 just weeks prior.

A total of 3.45 million Bitcoin is held in treasuries, with 834,000 (3.97%) in public company treasuries and over 1.39 million (6.6%) via spot ETFs.

This trend may position Bitcoin to rival gold’s market capitalization of approximately $22 trillion. According to market research director Joe Burnett of Unchained, “Bitcoin will likely reach a valuation of around $1.8 million by 2035.”

Weakening Retail Position

While institutional holdings have surged, retail participation in Bitcoin allocations has fallen by 37% since November 2024, dropping to 11.6%. Specified Bybit Research, this decrease coincides with an increase in holdings of altcoins.

XRP holdings, for instance, doubled from 1.29% in November to 2.42% as of May, reflecting expectations surrounding potential ETF approval for XRP. The report suggests institutions are shifting capital from SOL to XRP based on these ETF prospects.

Expert Insights & Future Outlook

“When I think about where Bitcoin will be in 10 years, there are two models I admire. One is the parallel model, which suggests that Bitcoin will be about $1.8 million in 2035.”

Analysts suggest Bitcoin’s recent performance, outpacing major global assets following the Trump administration’s takeover, has further fueled institutional interest as an alternative diversifier.