Bitcoin News Today: Institutional Money Moves: Why Ethereum ETFs Are Winning Over Bitcoin

Investment advisors have emerged as the largest purchasing group for crypto spot ETFs, signaling a significant shift in capital flows from speculative trading to long-term, portfolio-driven allocation strategies. According to recent on-chain and fund flow data, Ethereum (ETH) and Bitcoin (BTC) spot ETFs have seen increasing inflows from institutional and professional investors, with BlackRock's iShares Ethereum Trust (ETHA) and iShares Bitcoin Trust (IBIT) leading the charge. This trend underscores a growing institutional confidence in cryptocurrency as part of a diversified, yield-aware portfolio strategy [2].

BlackRock’s ETHA alone absorbed $323 million in inflows on a single day, and Fidelity’s FETH added $85.5 million, contributing to the Ethereum ETF’s $16.5 billion in total assets under management. These figures outpaced Bitcoin ETF inflows on the same day, which totaled $88 million. The cumulative data suggests a temporary rotation of capital into Ethereum, likely driven by its yield-generating staking mechanisms, which are absent for Bitcoin. The preference for Ethereum-based ETFs reflects a strategic shift among asset managers seeking to incorporate yield-bearing assets into their investment frameworks [2].

The dominance of BlackRock’s ETFs is also evident in custody trends. BlackRock’s iShares Bitcoin Trust now holds 745,357 BTC, surpassing holdings at both Coinbase and Binance. On the Ethereum side, its ETF holdings have climbed to 3.6 million ETH, closing the gap with Coinbase and challenging Binance’s 4.7 million ETH. This structural realignment in custody preferences indicates that institutions are increasingly favoring regulated ETFs over traditional exchange custody. The concentration of assets in ETFs reduces liquidity on exchanges, tightening the available supply and amplifying the impact of ETF inflows on price movements [2].

The decline in exchange inflows for both Bitcoin and Ethereum further reinforces this trend. On-chain data from CryptoQuant shows that Bitcoin’s 30-day moving average of exchange inflows has reached its lowest level since May 2023, with Coinbase and Binance reporting historically low BTC deposits. Similarly, Ethereum inflows have dropped to levels last seen in April 2023, despite the asset’s price having doubled since that time. This suggests a broader reluctance among investors to move assets onto exchanges for short-term trading, instead opting for ETFs and cold storage as long-term investment strategies [2].

Analysts attribute this shift to broader macroeconomic and institutional developments. The accommodative stance of U.S. Federal Reserve Chair Jerome Powell, alongside expectations of a potential interest rate cut in September 2025, has created a favorable backdrop for risk-on assets like cryptocurrencies. BlackRock’s growing dominance in the ETF space, combined with the structural shift in custody preferences, points to a maturing market where institutional investors are leveraging regulated vehicles to access and manage exposure to digital assets. While Ethereum has seen a temporary edge in ETF inflows, Bitcoin’s larger ETF market share and broader institutional acceptance position it as the leading long-term asset in the crypto space [2].

Source: [1] Wealthspire (https://www.wealthspire.com/) [2] Ethereum ETF Inflows Outpace Bitcoin ETFs: Is ETH a Better Buy (https://watcher.guru/news/ethereum-etf-inflows-outpace-bitcoin-etfs-is-eth-a-better-buy) [3] Bitcoin ETF Inflows: BTC-USD Rebounds to $111K as ... (https://www.tradingnews.com/news/bitcoin-etf-inflows-btc-usd-recovers-to-111k-usd) [4] BlackRock BTC ETF Balance Tops Coinbase, Is ETH Next? (https://cointelegraph.com/news/blackrock-btc-etf-balance-flips-coinbase-is-eth-next)