Ethereum Surpasses Bitcoin in Key Fund Holdings Growth

Recent developments indicate that Ethereum is outpacing Bitcoin in terms of growth in fund holdings. This trend is largely attributed to increasing institutional interest in ETH, highlighted by a surge in Ethereum ETF inflows since the beginning of the year.

A CryptoQuant analysis has revealed a notable shift in institutional allocations, with Ethereum outpacing Bitcoin in the growth of fund holdings. Recent data show a significant divergence in how institutions are investing in ETH and BTC. While both cryptocurrencies continue to attract long-term investments, the pace of growth between the two has shifted dramatically over the past year.

Currently, Bitcoin fund holdings are at approximately 1.3 million BTC, reflecting a 36% increase over the last year. According to the CryptoQuant analysis, this growth indicates a steady but cautious accumulation by institutions, consistent with Bitcoin’s established role as a macro reserve asset and a hedge against inflation. The analysis emphasizes that the influx of capital into Bitcoin tends to be stable, measured, and less influenced by short-term market fluctuations.

In contrast, Ethereum has enjoyed a much more pronounced growth trajectory. The total ETH fund holdings now stand at around 6.8 million ETH, marking an impressive year-over-year increase of approximately 138%. The CryptoQuant analysis attributes this acceleration to the growing influx of spot ETH ETF investments, alongside increased participation in staking and Ethereum’s vital role as the foundational settlement layer for decentralized finance (DeFi), tokenization, and layer-2 networks.

The evolving ratio of Ethereum to Bitcoin fund holdings further highlights this structural shift in institutional investment strategies. A year prior, ETH fund holdings were roughly three times the size of Bitcoin's fund holdings; that ratio has now expanded to nearly five. This change, as noted by the CryptoQuant analysis, reflects a sustained shift rather than a temporary trend, driven by the distinct narratives surrounding each asset: Bitcoin as a digital monetary asset and Ethereum as a yield-bearing network infrastructure.

According to the analysis, a significant implication of this shift is that institutions are increasingly viewing Ethereum as a core asset rather than a secondary option. While Bitcoin continues to maintain its status as the leading macro asset, its ownership base appears to be more mature and growing at a slower pace. The ongoing divergence in the ETH/BTC ratio is expected to hinge on various factors, including ETF performance, trends in on-chain activity, and overall liquidity conditions in global markets.

In a separate analysis, the crypto research platform CryptoRank has indicated that Ethereum has also surpassed Bitcoin in various metrics, further reinforcing its growing prominence within the institutional investment landscape. This trend underscores a broader acceptance and recognition of Ethereum's potential as a key player in the crypto space.

As we look to the future, the dynamics between Ethereum and Bitcoin will likely continue to evolve, shaped by ongoing institutional interest and the broader market environment.