In the past 30 days, global asset management giant BlackRock has added 1.33 million Ethereum (ETH) to its portfolio, while Bitcoin (BTC) has only increased by 30,000. Compared to the same period last year, BlackRock's ETH holdings have grown by 64.9%, while BTC has only grown by 4.2%, with ETH accumulating at a rate 15 times that of BTC.
This stark contrast has sparked heated discussions: Why are institutions so optimistic about Ethereum? Will ETH become the protagonist of the next bull market?
BlackRock's 'ETH Fever': Data Reveals Institutional Preferences
As the world's largest asset management company, every investment by BlackRock attracts attention. This significant increase of 1.33 million ETH, valued in the billions, demonstrates strong institutional confidence in Ethereum. In contrast, the increase in BTC (only 30,000) appears conservative, highlighting a clear tilt in institutional asset allocation.
In terms of growth rate, BlackRock's ETH holdings have increased by 64.9% year-on-year, while BTC has only seen a 4.2% increase. In other words, BlackRock's pace of positioning in Ethereum is 15 times that of Bitcoin! This not only reflects Ethereum's market appeal but also suggests that institutions are redefining the future value of crypto assets.
Why is Ethereum more favored? Three Driving Forces Explained
Why is Ethereum able to 'steal the limelight' from Bitcoin? Industry insiders point out that the following three factors may be key to institutions increasing their ETH positions:
1. Technological Upgrades Unleash Potential: Ethereum significantly improves network efficiency and scalability through Layer 2 solutions (such as Arbitrum and Optimism) and future sharding technology. This allows ETH's application scenarios in DeFi, NFTs, and Web3 to continue expanding, far exceeding Bitcoin's singular 'digital gold' positioning.
2. The Attractiveness of Staking Yields: Since Ethereum completed its 'merge' and transitioned to proof of stake (PoS) in 2022, staking ETH can yield an annualized return of 3%-5%. For institutions seeking stable returns, this is more attractive than the passive holding of Bitcoin.
3. The ETF Boom Boosts Momentum: Since its launch, Ethereum ETFs have attracted a significant inflow of institutional funds. As the leader in the ETF market, BlackRock further increases its exposure through its ETH ETF products, while the funding growth of Bitcoin ETFs has stabilized.
Why has Bitcoin 'lost favor'?
As the 'big brother' of the crypto market, Bitcoin has always been seen as a safe-haven asset. However, its ecological development is relatively slow, with application scenarios mainly focused on value storage and speculative trading. In contrast, Ethereum's diversification and technological innovation clearly align more with institutions' expectations for long-term growth. BlackRock's cautious increase in BTC (only 30,000, with a growth of 4.2%) indicates that institutions may believe Bitcoin lacks new growth momentum in the short term, with limited room for price appreciation.
Market Trend: ETH may lead this bull market
Recent market sentiment also confirms this trend. Blockchain analysis platform Santiment points out that Ethereum's social sentiment and on-chain activity have slightly surpassed Bitcoin. Bitcoin's rise is often accompanied by social media hype, while Ethereum's steady performance has attracted institutional patience and accumulation by whales. On-chain data shows that institutions, including BlackRock, have accumulated over 10 million ETH (approximately $40 billion), laying the foundation for Ethereum's long-term rise.
Ethereum's price has also shown strong momentum recently, approaching historic highs. The large-scale positioning by institutions indicates they are betting on ETH becoming the core pillar of the digital asset market over the next decade.
Suggestions
BlackRock's actions are undoubtedly a significant signal. Ethereum's technological advantages, staking yields, and the ETF boom make it a 'hot cake' for institutional funds. However, the cryptocurrency market is highly volatile, and investors need to be cautious of short-term correction risks when following institutional footsteps, being wary of the volatility brought by high leverage.
However, during an upward trend, especially in this phase before a peak rise, non-gamblers should avoid shorting ETH-related assets at high positions. As the bull market does not show signs of topping, it is advisable to buy on dips.