Bitcoin Solidifies Its Dominance as Institutional Interest Grows

Overview of Bitcoin’s Market Position

In the evolving landscape of digital assets, Bitcoin continues to assert its dominance, particularly as U.S. regulations become more favorable and institutional interest escalates. The introduction of spot Bitcoin exchange-traded funds (ETFs) has further catalyzed structured investments in this leading cryptocurrency.

Key Highlights

• Bitcoin’s share in total cryptocurrency portfolios increased from 25.4% in November 2024 to 30.95% by May 2025.
• The cryptocurrency commands over 62% of the total market, underscoring its leadership status.
• XRP has surpassed Solana to become the third-largest non-stablecoin cryptocurrency, buoyed by optimism surrounding potential XRP ETF approvals.

Bitcoin’s Growing Institutional Adoption

Recent reports from Bybit indicate that Bitcoin is now included in approximately one-third of all cryptocurrency portfolios, with its share rising significantly to 30.95% as of May 2025. This trend illustrates a strategic shift among major investors, who are increasingly viewing Bitcoin as a fundamental digital asset. Data from CoinGecko corroborates this, revealing that Bitcoin’s market dominance has exceeded 62%.

ethereum‘s Declining Presence

While Bitcoin strengthens its foothold, ethereum appears to be losing traction among investors. Recent statistics indicate a notable shift in sentiment, with institutions gravitating more towards Bitcoin and away from ethereum. The latest data highlights this trend:

• As of May 2025, the ETH-to-BTC holding ratio has fallen to 0.27, indicating that Bitcoin now outweighs ethereum by a ratio of four to one in investment portfolios.
• A total of 245 institutional investors have incorporated Bitcoin into their treasury holdings.
• Combined holdings of Bitcoin by corporations and ETFs have surpassed 3.45 million BTC, representing a significant portion of the total supply.
• Retail investor participation has diminished, with holdings decreasing by 37% since November 2024.

Despite ethereum‘s struggles, there are signs of a potential rebound. Between April and May 2025, ethereum holdings increased from a low of 3.89%, nearly doubling in a month. However, this figure remains below the November 2024 peak of 11.12%, indicating ongoing challenges for ethereum relative to Bitcoin.

XRP’s Rise Amidst Regulatory Optimism

In a noteworthy development, XRP has ascended to become the third-largest non-stablecoin cryptocurrency, overtaking Solana. This shift is largely driven by rising expectations for an XRP spot ETF approval. Investor sentiment is leaning towards regulatory acceptance, prompting a capital influx into XRP.

Bloomberg analysts currently assign a 95% probability to the approval of an XRP spot ETF, reflecting strong confidence in its future. In contrast, Polymarket’s odds have dipped to 75% as of this writing. Despite this slight adjustment, XRP remains a focal point in market discussions, particularly when compared to other alternative cryptocurrencies. Bybit noted:

“With its bullish price trajectory, XRP has emerged as a standout among altcoins, with its holding percentage increasing from 1.29% in November 2024 to 2.42% in May 2025.”

Interest in Solana, on the other hand, has waned considerably. Since October 2024, the percentage of investor holdings in Solana has dropped by 35%. Although there are still prospects for a Solana ETF, confidence in its near-term performance appears diminished.

Conclusion: A Shift in Asset Allocation

Market participants widely anticipate that Ripple’s ETF will receive regulatory approval ahead of Solana’s, leading to a noticeable shift in asset allocation. Some institutional funds have reduced their exposure to Solana, reallocating resources into XRP in anticipation of more immediate ETF approval. This strategic capital rotation has enabled XRP to gain ground in the rankings.

Disclaimer: The opinions expressed in this article are solely those of the author and should not be construed as investment advice. Always conduct your own research before making investment decisions.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.