Bybit has released its latest "Q3 2025 Asset Allocation Report," which shows that investors are significantly reducing their stablecoin holdings and increasing their allocations to Solana (SOL), XRP, and other altcoins. While Bitcoin (BTC) and Ethereum (ETH) remain core portfolio holdings, institutional investors are leading the market's shift away from stablecoins and toward crypto assets with higher yield potential.

Report highlights:

BTC accounts for approximately $1 of every $3 held by investors; ETH holdings have increased by 20% since the last report; and XRP has become the third-largest non-stablecoin asset.

The concentration of BTC and ETH in non-stablecoin assets dropped from 58.8% in May 2025 to 55.7% in August 2025, mainly due to more funds flowing into altcoins.

Stablecoins were significantly reallocated to SOL, XRP, and other altcoins during Q3.

Solana's holdings hit a yearly high, and the market expects it to replicate the "institutional fund management" strategy of BTC and ETH.

Decentralized exchange (DEX) tokens became the biggest beneficiaries of stablecoin outflows, followed by Layer 1, Layer 2 and RWA (real world asset) tokens; meme coins performed flat, and gold tokens remained in a minority position.

The Bybit research team noted that Q3 trends highlighted growing investor interest in altcoins. Institutional investors, in particular, significantly reduced their cash positions to capitalize on market momentum, while BTC and ETH remained cornerstones of long-term portfolio investments. The rise of SOL, XRP, and DEX tokens demonstrates the accelerating diversification of crypto asset portfolios.