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Ethereum has been identified as surpassing Bitcoin regarding growth in fund holdings. This development coincides with an increasing number of institutions investing in ETH’s narrative, evidenced by a rise in the Ethereum ETF inflows since the beginning of the year.
Ethereum Surpassing Bitcoin In Fund Holdings Expansion
A CryptoQuant examination disclosed a transforming institutional allocation with Ethereum surpassing Bitcoin in the growth of fund holdings. Recent data regarding fund holdings have revealed a substantial disparity between ETH and BTC concerning how institutions are distributing their resources. The examination pointed out that although both assets have continued to lure long-term capital, the rate of growth between them has changed considerably over the past year.
Bitcoin fund holdings currently amount to approximately 1.3 million BTC and have increased by about 36% over the last year. The CryptoQuant examination indicated that this mirrors consistent but restrained institutional accumulation, aligning with BTC’s status as a macro reserve and a hedge against inflation. The analysis noted that the influx of capital into BTC seems to be stable, calculated, and less influenced by short-term market fluctuations.
Concurrently, Ethereum has undergone more substantial growth. The total ETH fund holdings are at 6.8 million ETH, an increase of around 138% year-over-year (YoY). The CryptoQuant examination pointed out that this surge corresponds with the scaling of spot ETH ETF inflows. It further correlates with the increase in staking participation and Ethereum’s role as the foundational settlement layer for DeFi, tokenization, and layer-2 networks.
The Ethereum/Bitcoin fund holdings ratio further exemplifies the structural transformation in institutional allocation. A year ago, ETH fund holdings were about three times more substantial than Bitcoin fund holdings. Currently, the ratio is reportedly close to five. The CryptoQuant examination discovered that this is not merely a transient rotation but a lasting shift fueled by distinct narratives: Bitcoin as a digital monetary asset, and Ethereum as a yield-generating network infrastructure.
The examination asserted that a significant implication is that institutions now regard Ethereum as a primary holding instead of a secondary allocation. Conversely, Bitcoin continues to maintain its position as the predominant macro asset, although with a more seasoned and slower-growing ownership base. The persistence of this divergence in the ETH/BTC ratio is anticipated to depend on ETF lows, on-chain activity dynamics, and broader liquidity conditions across global markets.
ETH Also Exceeds BTC In This Parameter
Crypto research platform CryptoRank disclosed that Ethereum has outstripped Bitcoin in digital asset treasuries (DATs) by total supply. ETH is currently leading, with 4.1% of its total supply held by institutional treasuries, followed by Bitcoin, with 3.6% retained by DATs, and Solana, with 2.7% possessed by these entities.
CryptoRank indicated that the rise in Ethereum holdings among these DATs coincided with Donald Trump’s signing of the GENIUS Act, which governs the stablecoin industry. Subsequently, institutional investors have bolstered their ETH accumulation, establishing ETH as the primary infrastructure asset of the DeFi ecosystem.
Featured image from iStock, chart from Tradingview.com
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