Professional Investors Prefer Ethereum Over Bitcoin for Initial Crypto Investments
Bitwise CIO Matt Hougan reports a trend where professional investors are increasingly choosing Ethereum over Bitcoin for initial crypto investments. Key points include:
- Ethereum's utility in decentralized finance and smart contracts attracts institutional interest.
- Many institutions do not invest in gold, limiting Bitcoin's appeal as it is often compared to digital gold.
- Investors prefer technologies they already allocate to, making ETH a natural fit.
- In August 2025, Ethereum Spot ETFs bought $3.87 billion worth of ETH, primarily from professional investors.
- BlackRock led with a $3.38 billion allocation to ETH, reflecting a strong institutional preference for Ethereum over Bitcoin.
- ETH reached new all-time highs in August, with significant purchases aimed at long-term holdings, reducing sell pressure.
- As of now, nearly 36 million ETH is locked in staking contracts, representing 29% of the circulating supply, offering a steady yield of 3%.
- Transaction volumes exceeded $320 billion, indicating high engagement in DeFi and tokenized assets.
