Embracing Bitcoin and 'Ditching' Ethereum... Institutions Undergo Ruthless Portfolio Restructuring

▲ Bitcoin (BTC), Ethereum (ETH)

Bitcoin (BTC) is rapidly increasing its holdings in major funds, backed by an influx of institutional investor capital. In contrast, Ethereum (ETH) showed a significant outflow during the same period, revealing a clear difference in institutional demand compared to Bitcoin.

According to U.Today, a cryptocurrency specialized media outlet, on May 8 (local time), crypto analytics platform CryptoQuant released data showing a clear divergence in institutional fund flows for Bitcoin and Ethereum since February. Bitcoin's major institutional holdings increased by over 92,000 BTC in approximately three months, indicating strong accumulation.

According to the data, Bitcoin holdings increased from approximately 1.278 million BTC to 1.37 million BTC since early February, an increase of about 7.2%. U.Today reported that with steady capital inflows into Exchange Traded Funds (ETFs), institutional investors are increasingly viewing Bitcoin as a long-term store of value.

Ethereum showed the opposite trend. During the same period, institutional Ethereum holdings decreased from approximately 5.93 million ETH to 5.80 million ETH. The decrease was over 127,000 ETH, a reduction of about 2.1% over approximately three months.

While the overall cryptocurrency market has shown signs of recovery after the long-term volatility that began late last year, Ethereum's recovery has not received sufficient support in terms of institutional demand. U.Today reported that despite Ethereum's price stabilizing after a sell-off, fund holdings continued to decline. This indicates that large investors are maintaining a cautious stance on Ethereum.

The disparity in fund flows between Bitcoin and Ethereum demonstrates that institutional investors are adopting different strategies for different assets within the cryptocurrency market. Bitcoin increased its institutional holdings based on ETF demand and a preference for long-term holding, while Ethereum could not avoid a decrease in holdings despite the market recovery.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*