Ethereum was revealed to be overtaking Bitcoin in terms of fund holding growth. This comes as more institutions buy into the ETH narrative, with an increase in Ethereum ETF Entries since the start of the year.
Ethereum Overtakes Bitcoin in Fund Holdings Growth
A CryptoQuant Analysis revealed a shifting institutional allocation, with Ethereum overtaking Bitcoin in fund holding growth. Recent data on fund holdings showed a notable difference between ETH and BTC regarding how institutions allocate their capital. The analysis noted that while both assets have continued to attract long-term capital, their pace of growth has changed significantly over the past year.
Bitcoin fund holdings currently stands at around 1.3 million BTC and has increased by around 36% over the past 12 months. CryptoQuant’s analysis noted that this reflects steady but measured institutional accumulation, which is consistent with BTC’s role as a macro-reserve and inflation hedge. The analysis adds that capital flowing into BTC appears to be stable, rhythmic, and less responsive to short-term market cycles.
Meanwhile, Ethereum has seen greater expansion. The total ETH fund holdings amounted to 6.8 million ETH, up approximately 138% year-over-year (YoY). CryptoQuant analysis noted that this acceleration corresponds to the increase in spot ETH ETF inflows. This further aligns with increased staking participation and Ethereum’s role as a core settlement layer for DeFi, tokenization, and Layer 2 networks.
The Ethereum/Bitcoin fund holding ratio further illustrates the structural shift in institutional allocation. A year ago, the ETH fund’s holdings were about three times the size of those in the Bitcoin fund. Today, the ratio would be close to five. CryptoQuant analysis found that this is not just a temporary rotation but a sustained shift driven by differentiated narratives: Bitcoin as a digital currency asset and Ethereum as a digital currency asset. cost-effective network infrastructure.
The analysis indicates that the main implication is that institutions now view Ethereum as a core wallet rather than a secondary allocation. On the other hand, Bitcoin retains its role as a dominant macro asset, but with a more mature and slower-growing ownership base. The persistence of this divergence in the ETH/BTC ratio This is said to depend on ETF lows, on-chain activity trends and broader liquidity conditions in global markets.
ETH also exceeds BTC in this metric
Crypto Research Platform CryptoRank Revealed that Ethereum overtook Bitcoin in digital asset treasuries (DAT) per total offer. ETH now leads with 4.1% of its total supply held by institutional treasuries, followed by Bitcoin, with 3.6% held by DATs, and Solana, with 2.7% held by these institutions.
CryptoRank said the increase in Ethereum holdings among these DATs coincided with Donald Trump signing the GENIUS lawwhich regulates the stablecoin industry. Since then, institutional investors have increased their accumulation of ETH, positioning ETH as the core infrastructure asset of the DeFi economy.
Featured image from iStock, chart from Tradingview.com
Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
