Institutional Shift Evident As Ethereum Takes The Crown In Digital Asset Treasuries Over Bitcoin – Details

Ethereum and Bitcoin continue to lead the broader crypto market, marked by increasing prices, notable Exchange-Traded Funds (ETFs) flows, and growing treasury reserves. While the two leading cryptocurrencies are dominating in these areas, ETH seems to be ahead of BTC in terms of treasury supply.

Ethereum Flips Bitcoin In Treasury Supply

For a long time, Bitcoin, the largest cryptocurrency, has been at the forefront of digital asset-based treasury strategies. However, with the growing adoption and interest in Ethereum via this key initiative, the leading altcoin’s dominance appears to be challenging BTC in this aspect.

In a surprising shift within institutional crypto holdings, Ethereum has officially surpassed Bitcoin in Digital Asset Treasuries (DATs) by total supply. This shift in dominance from BTC to ETH is reported by CryptoRank, a top crypto industry research and on-chain analytics platform.

The milestone, which signals a changing tide in corporate and fund-level confidence, demonstrates Ethereum’s increasing dominance as the blockchain of choice for enterprise-grade apps, smart contracts, and decentralized finance (DeFi). Both retail and institutional investors are largely attracted to ETH due to the network’s robust performance and scalability.

As more businesses look to ETH for its practicality and potential for long-term income, the power dynamics between the top two cryptocurrencies may be shifting. Such a development is highly likely to reshape how digital assets are used, seen, valued, and held by corporate financial companies.

With about 4.1% of its total supply held by institutional or treasury companies, Ethereum has taken the top spot in Digital Asset Treasuries by total supply. Bitcoin treasuries now hold 3.6% of BTC’s overall supply, while Solana is at 2.7%.

More ETH Investors Coming Following The GENIUS Act

According to the on-chain platform, the spike in ETH ownership occurred at the same time as the signing of the GENIUS Act by United States President Donald Trump. The GENIUS Act represents a historic stablecoin law that fortified a regulatory foundation for on-chain finance, a condition analysts believe will be most beneficial to ETH.

Since then, institutional investors have increased the rate at which they are accumulating Ethereum. This steady spike in high-net-worth investors and accumulation strengthens ETH’s position as the core infrastructure asset across the DeFi economy.

Institutional investors are not only stacking ETH and BTC through a treasury strategy, but they also purchase these leading cryptocurrencies via the Spot ETFs. In another post on the X platform, CryptoRank highlighted that the crypto pullback is still lingering as traders go risk-off and perp funding turns negative. However, institutions are showing interest, as evidenced by the BTC and ETH ETFs logging inflows in two straight days.

At the time of writing, ETH’s price was holding $3,900 despite a more than 2% decline in the last 24 hours. ETH’s price may be down, but CoinMarketCap data shows that its trading volume has increased by over 9% over the past day.

Featured image from Pixabay, chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.