Crypto Investors Expand Reach as Market Dip Persists, Says Robinhood Executive
Robinhood’s head of crypto, Johann Kerbrat, notes a broader appetite for alt‑coins, staking and DeFi even as overall sentiment remains bearish.
A wider basket of assets
In a recent interview with Cointelegraph, Robinhood’s chief of crypto, Johann Kerbrat, observed that the platform’s users are increasingly venturing beyond Bitcoin (BTC) and Ethereum (ETH). While the two leading coins still command the majority of trading volume, a growing segment of investors is “buying the dip” across a more diverse set of digital assets.
Kerbrat highlighted that the current market correction is being treated by many as an entry point for broader exposure, rather than a reason to retreat to the safety of the top‑two cryptocurrencies. “Our customers are not only staying active; they’re also spreading their positions across a wider range of tokens,” he explained.
Alt‑coin season still in its infancy
The Altcoin Season Index, compiled by CoinMarketCap, posted a Bitcoin‑centric score of 33 out of 100 on Sunday, underscoring that Bitcoin continues to dominate trader attention. Nonetheless, the uptick in activity among smaller‑cap assets suggests a tentative shift toward a more balanced market.
Industry voices echo this sentiment. MidChains CEO Basil Al Askari told Cointelegraph that institutional asset managers are beginning to allocate capital to the top 20 cryptocurrencies, though they remain cautious about deep‑rank alt‑coins and niche DeFi projects. “It’s a series of baby steps,” he said, adding that larger firms may eventually build dedicated teams to operate along varied risk spectra.
Comparison with previous outlooks
The observations come after Coinbase’s former Asset Management President Anthony Bassili cautioned in November that the broader market had yet to form a consensus on a “third coin” worth serious focus, naming Solana (SOL) as a possible candidate. Bassili stressed a “very clear view” that Bitcoin holds the primary position, followed by Ethereum. Kerbrat’s findings suggest that, while the hierarchy remains intact, the distance between the top two and the rest is narrowing as investors experiment with alternatives.
Growing use‑case activity
Beyond mere trading, Robinhood users are putting their holdings to work. Since the platform introduced staking in December, staking volumes have surged, and a noticeable number of traders are exploring decentralized finance (DeFi) protocols despite lingering market uncertainty.
“The traction on staking has been unexpected but encouraging,” Kerbrat remarked. “It shows that many holders are looking for functional returns rather than simply waiting for price appreciation.”
Market backdrop
The broader crypto environment remains stressed. The Crypto Fear & Greed Index has lingered in the “Extreme Fear” zone since early February, reflecting heightened risk aversion. Concurrently, U.S. spot Bitcoin exchange‑traded funds (ETFs) have recorded five straight weeks of net outflows, tallying roughly $3.8 billion withdrawn during that period.
What this means for the market
- Diversification is gaining traction: Retail and institutional participants are gradually widening their exposure beyond BTC and ETH, signaling a maturing view of crypto as an asset class.
- Alt‑coin momentum is still modest: While interest is rising, Bitcoin retains a decisive advantage, as indicated by the Altcoin Season Index.
- Staking and DeFi adoption are growing: Increased participation in staking and DeFi suggests that users are seeking yield generation even in a down market.
- Institutional entry is cautious: Large asset managers are focusing on the upper‑tier of the market, avoiding deep‑rank alt‑coins for now, but may expand strategies as volatility normalizes.
- Sentiment remains bearish: Persistent “Extreme Fear” readings and continuous ETF outflows underline that the overall market appetite remains subdued.
Bottom line
Robinhood’s latest data points to a subtle but noteworthy shift: investors are using the current dip not only to accumulate Bitcoin and Ethereum but also to test the waters of a broader crypto portfolio. While the market’s risk sentiment continues to be negative, the willingness to diversify, stake and explore DeFi may lay groundwork for a more resilient ecosystem once price stability returns.
Source: https://cointelegraph.com/news/crypto-investors-explore-assets-bitcoin-ethereum-market-uncertainty-robinhood?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
