Institutional Investors have begun to embrace the idea of cryptocurrency investing. In fact, in 2021 we saw increased institutional capital into crypto, and this is expected to continue in the long term. All investors should consider cryptocurrencies as a serious asset class. This is why this trend is so important for individual investors and retail investors:

• Institutional investments in crypto are likely to be long-term. As such, there is potential to increase asset value.

• Cryptocurrency has more credibility because it is backed by institutional money. This makes crypto more attractive to individual investors.

• However, institutional capital isn’t flowing in all assets. In fact, only a few cryptocurrencies are benefiting.

At first glance, you’d expect Bitcoin (BTC) to be an obvious choice for institutional money. This is false. While Bitcoin is still a large part of crypto, institutional investors are more interested in these two coins:

Ethereum (ETH)

Ethereum (ETH) is the second biggest crypto by market cap. Its overall ecosystem is the main reason that Ethereum is so popular. Ethereum is a platform that allows developers to launch decentralised apps.

Data Source: Tradingview.com

In fact, Ethereum is the platform that has launched the most new DApps on the market, with thousands of projects. It is a key driver for blockchain technology and innovation in future.

Cardano (ADA)

Cardano (ADA) is also a scalable blockchain that uses the proof of stake consensus to validate transactions. The chain is also a platform that allows developers to launch DApps, just like Ethereum.

Cardano was founded in 2017 and has since grown to become one of the most valuable blockchains in the world. Institutional investors are also interested in it. As of the writing. ADA was being sold for $1. 34 with a market cap of $44.7 billion.