Recent data shows that Bitcoin and Ethereum whales are going in opposite directions. This has led to discussions about whether institutional tastes are shifting and what this means for the broader market.
Institutions Are Buying More ETH Than BTC
In the last two weeks, the number of Bitcoin wallets holding at least 1,000 BTC has declined by 1.61%. Meanwhile, Ethereum has seen a bullish surge, with wallets holding at least 10,000 ETH increasing by 8%, according to Santiment.
Backing this trend, Arkham reported that investment giant BlackRock purchased over $1.2 billion worth of Ethereum last week while acquiring just $267 million in Bitcoin. That’s a nearly 4x larger allocation to ETH compared to Bitcoin. “This is what it looks like when institutions allocate to ETH,” stated Arkham
Ethereum’s Rally Not Driven by Bitcoin Sell-Offs
Ethereum’s price is currently rallying, but analysts say it’s not hurting Bitcoin. Recent research from CryptoQuant backs up the idea that ETH’s increases are coming from new money coming in, not from people who already own BTC.
One of the most clear signs is the Bitcoin Realized Cap. It figures out how much BTC is worth on the market by looking at the last price at which each coin was sold on the blockchain. This shows how much real money has been put into Bitcoin. New data shows that it hasn’t gone down much, which means that not many Bitcoins have been sold to buy Ethereum. Plus, this shows that buyers, big and small, are beginning to see ETH as its own asset class, not just a way to protect themselves against Bitcoin.
Why Ethereum is Gaining Favor
There are a few main reasons why Ethereum seems to be drawing in more whales and institutional investors. The approval of U.S.-listed spot ETFs is giving regulated exposure, and more institutional buy-ins show that people are becoming more confident in ETH’s long-term potential. Layer 2 solutions like Base are also helping Ethereum by making it easier to use and more scalable. Also, the staking yield on ETH is a great way to get passive money in today’s high-interest-rate market. Bitcoin is still the digital gold, but Ethereum may be the better choice for the time being.
What to Watch Next
As more “whales” buy Ethereum, it could mean that the bullish trend will continue. Analysts are keeping a close eye on key factors like how large ETH inflows affect prices, what happens with spot ETF approvals in major markets, and how institutional allocations continue to diverge between BTC and ETH. If Ethereum keeps getting billions of dollars in institutional investments, it may quickly solidify its place as not only a blockchain focused on utility, but also a co-dominant store of value in the changing crypto landscape, along with Bitcoin.
Also Read: Ethereum Price to Hold Key Support as SharpLink Adds 77,210 ETH Last Week
