Institutions Opt for ETH Over BTC, BlackRock Leads $3.38B
Bitwise CIO Matt Hougan reports a shift in institutional behavior: professional investors are increasingly starting with Ethereum rather than Bitcoin. Hougan explains that many institutions skip Bitcoin—often seen as “digital gold”—because they do not hold gold in their portfolios. Instead, they favour Ethereum for its core utility in decentralized finance, smart contracts and Web3 applications.
In August 2025, Ethereum spot ETFs attracted $3.87 billion in inflows, driven largely by BlackRock’s $3.38 billion ETH allocation versus $707 million in Bitcoin. This institutional buying pushed Ethereum to new all-time highs. On-chain metrics show transaction volumes above $320 billion, while 36 million ETH (29% of the total supply) is locked in staking contracts delivering around 3% annual yields.
Because most purchases target long-term holdings, immediate sell pressure is low, supporting sustained price momentum. A monthly close above $4,630 would mark Ethereum’s strongest performance since the 2021 bull run. Market participants view these developments as a sign that institutional interest in ETH will continue building over the coming quarters.
Bullish
Institutional inflows into Ethereum signal strong demand and long-term commitment, reducing short-term sell pressure and fueling price momentum. BlackRock’s $3.38 billion ETH purchase via spot ETFs parallels past ETF-driven rallies, such as the 2021 surge following Grayscale’s GBTC inflows. On-chain metrics—$320 billion in transaction volume and 29% of ETH staked—underscore broad network engagement. In the short term, ETF buying and staking yields will likely drive further upside. Over the long term, sustained institutional allocation to Ethereum’s DeFi and smart-contract utility could reinforce its market position and attract additional capital, maintaining a bullish outlook.