Institutional Money Moving from Bitcoin to Ethereum?

▲ Ethereum (ETH), Bitcoin (BTC) ©Dasol Ko

As signs of institutional funds moving from Bitcoin to Ethereum are being observed, market analysis suggests that ETH is being re-evaluated as a new 'macro asset' beyond a mere altcoin.

According to the cryptocurrency media outlet Bitcoinist on May 16 (local time), global trading firm Jane Street has recently been reducing its exposure to Bitcoin ETFs and instead increasing its investment in Ethereum (ETH)-related assets. Market analyst Desi commented on this, stating, “While it cannot be definitively concluded as a conversion to an ETH maximalist, it is a signal that a real rotation of institutional funds is underway.”

The outlet reported that institutional investors have recently begun to view ETH as a core asset for decentralized finance (DeFi), tokenization, and blockchain infrastructure. While Bitcoin is primarily focused on its role as a ‘digital store of value,’ ETH is increasingly being recognized as an investment asset for financial infrastructure. Experts analyze that ETH is establishing itself as an independent macro asset alongside Bitcoin and Gold in institutional portfolios.

Changes have also been detected in on-chain data. Santiment reported that the realized profit of the ETH network has increased to $74.58 million, the highest level in the last three weeks. This figure comes despite a roughly 5.5% drop in ETH's price over the past three days. The outlet analyzed that investors who accumulated ETH when it was trading below $2,000 in February-March of this year are still in profit and are taking some profit realization amidst the recent decline.

Furthermore, on-chain movement on the Ethereum blockchain appears to be increasing. Santiment diagnosed that the ETH price is showing a strong compression around $2,241 on a 4-hour candle chart, which could indicate an increase in distributed selling activity. Historically, as trading volume increases, the overall realized profit and loss of the network also tend to grow.

The outlet assessed that current investor sentiment is leaning towards caution. However, Santiment emphasized that this should not be immediately interpreted as a bearish signal. Rather, if deeper realized losses occur in the future, a bottom signal may form, and for now, it is advisable to be cautious about aggressive position expansion until the end of the distributed selling phase is confirmed.

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