Crypto Investors Are Diversifying Beyond Bitcoin and Ethereum While Exploring New Altcoins Across the United States

Even as the crypto market experiences turbulence, some investors are seeing opportunity rather than risk.

Johann Kerbrat, head of crypto at Robinhood, told Cointelegraph that many users are actively exploring options beyond the top two cryptocurrencies, Bitcoin (BTC) and Ether (ETH).

“Customers are viewing the current downturn as a chance to buy the dip,” Kerbrat said.

He added that many investors aren’t just sticking to the familiar giants but are branching out into other digital assets, diversifying their portfolios across a wider spectrum of cryptocurrencies.

The Altcoin Landscape Remains Uneven

Despite this growing interest in alternative coins, data shows that Bitcoin still dominates investor attention.

According to the Altcoin Season Index, Bitcoin scored 33 out of 100 on Sunday, indicating that investors are favoring BTC over smaller altcoins.

This suggests that while people are experimenting with new assets, many still treat crypto as a relatively high-risk class, with Bitcoin and Ethereum forming the backbone of most portfolios.

It’s a sign that the community is gradually becoming comfortable with the volatility inherent in digital currencies.

Investors Still Have a Clear Hierarchy

Months ago, Anthony Bassili, president of Coinbase Asset Management, noted that while Bitcoin and Ethereum enjoy widespread consensus as the primary assets, there’s still uncertainty over which coin should come next.

Solana (SOL) has been suggested as a potential third option, but overall, the market remains undecided.

Institutional players are also stepping in cautiously.

Basil Al Askari, CEO of MidChains, explained that asset managers are making large trades in the top 20 assets, but they are not yet venturing heavily into smaller altcoins or DeFi projects.

“It’s baby steps,” he said, though he sees the potential for large funds to develop specialized teams for different strategies along the risk curve.

Crypto Holders Are Engaging More Than Ever

Kerbrat highlighted that crypto users on Robinhood aren’t just holding coins—they’re actively using them.

Staking, for example, has seen significant adoption since Robinhood introduced the feature in December.

Additionally, more investors are exploring decentralized finance (DeFi) applications despite broader market uncertainty.

“It’s been surprising to see,” Kerbrat said.

“People are engaging with crypto in ways we didn’t necessarily expect a few years ago.”

Market Sentiment Still Feels the Pressure

Even with this increased activity, overall market sentiment remains cautious.

The Crypto Fear & Greed Index has stayed in “Extreme Fear” since early February. U.S. spot Bitcoin ETFs have experienced five consecutive weeks of net outflows, with investors pulling approximately $3.8 billion from the funds during that time.

The combination of fear-driven sentiment and opportunistic investors paints a complex picture: some are cautious, while others see the downturn as a strategic buying moment.

What’s Next

Looking ahead, it seems the crypto space will continue to balance between caution and opportunity.

Investors may increasingly look beyond the top two coins, exploring altcoins and DeFi strategies.

Institutional involvement could grow, particularly if dedicated teams emerge to manage risk across different digital assets.

Staking and other utility-driven activities may also expand, showing that crypto isn’t just an investment—it’s becoming a space for active financial engagement.

---

Summary

Crypto investors are increasingly diversifying beyond Bitcoin and Ethereum as the market remains volatile.

Johann Kerbrat of Robinhood reports that users are seeing the downturn as a buying opportunity, while institutional players take measured steps into the top 20 assets.

Despite extreme fear in the market and outflows from Bitcoin ETFs, many crypto holders are actively using their tokens, exploring staking and DeFi.

Although Bitcoin and Ethereum remain the core assets, interest in altcoins is slowly growing, signaling a more engaged and experimental investor base in the U.S. and globally.