Ethereum Overtakes Bitcoin as Institutional Investors Seek ETH Exposure

Institutional investors are shifting their focus to Ethereum (ETH) over Bitcoin (BTC), showing a preference for the second-largest cryptocurrency.

Institutional Interest in Ethereum

  • Bybit’s research report reveals that institutions are allocating more funds to ETH compared to BTC.
  • The rise in interest began in September 2023, with ETH trading around $2,000.
  • Ethereum became the single largest cryptocurrency held by institutions as of January 31, 2024.
  • Institutional interest in Bitcoin declined after the SEC’s approval of Spot Bitcoin ETFs in January 2024.

Anticipation for Ethereum’s Decun Upgrade

  • Investors are optimistic about Ethereum’s upcoming Decun Upgrade, scheduled for March 2024.
  • The upgrade is expected to bring significant improvements to the Ethereum network.

Retail Investors’ Sentiment

  • Retail investors remain more bullish on Bitcoin than Ethereum.
  • They are allocating more funds into BTC despite Ethereum’s recent surge in value.

Ethereum’s Recent Price Performance

  • Ethereum has experienced a substantial hike in its price over the past week, jumping over 7%.
  • At the time of writing, Ethereum is trading at $3,227, reflecting a 4.05% increase in the last 24 hours.


While institutional investors are showing a strong preference for Ethereum, retail investors remain cautious. Ethereum’s recent rally has elevated sentiment among institutional investors, but retail investors are opting to hold onto or incorporate additional Bitcoin into their portfolios.