Ethereum Overtakes Bitcoin in Institutional Treasuries, Marking a Major Shift in Crypto Investment Preferences
Ethereum has officially surpassed Bitcoin in the total amount held within institutional digital asset treasuries, signaling a pivotal transformation in how major investors and organizations approach crypto asset allocation. This shift highlights a growing preference for Ethereum’s technological infrastructure and its expanding role in decentralized finance (DeFi), smart contracts, and enterprise applications.
For years, Bitcoin maintained its status as the flagship asset among corporate treasuries and institutional portfolios, often seen as a decentralized, inflation-resistant store of value. However, recent on-chain data from leading analytics provider CryptoRank reveals that Ethereum has now taken the lead in this metric. Approximately 4.1% of Ethereum’s total supply is currently held by institutional and treasury entities, compared to 3.6% for Bitcoin. Solana trails behind with 2.7%.
This change in the investment landscape coincides with a broader institutional embrace of Ethereum, catalyzed in part by the recent enactment of the GENIUS Act in the United States. Signed into law by President Donald Trump, the GENIUS Act lays the groundwork for regulatory stability in the stablecoin and on-chain finance space. Analysts suggest that these legal assurances have bolstered confidence in Ethereum’s long-term utility, particularly among large-scale investors.
The GENIUS Act has effectively legitimized key aspects of decentralized applications and financial products, a sector where Ethereum remains the dominant force. With a mature ecosystem and a well-established smart contract platform, Ethereum is increasingly viewed not just as a cryptocurrency, but as the backbone of future financial infrastructure.
As a result, institutional accumulation of ETH has accelerated. High-net-worth investors and corporate entities are steadily increasing their holdings, positioning Ethereum as an essential asset in diversified crypto portfolios. This trend underscores a broader strategic shift from speculative investment to fundamental infrastructure backing.
Moreover, Ethereum’s appeal is magnified by its growing presence in traditional investment vehicles. Spot ETFs (exchange-traded funds) for both ETH and BTC have continued to attract inflows, even amid market pullbacks and short-term volatility. According to recent CryptoRank updates, ETH ETFs saw consecutive days of positive inflows, suggesting that institutions remain confident in Ethereum’s long-term value, despite temporary price corrections.
At the time of reporting, ETH was trading around $3,900, showing resilience despite a 2% drop over the previous 24 hours. Interestingly, trading volume for Ethereum surged by over 9% during the same period, indicating heightened investor engagement and market activity.
This institutional pivot toward Ethereum is not just about numbers—it reflects a broader reevaluation of what role each digital asset plays in the evolving financial ecosystem. Bitcoin still maintains its position as a store of value and digital gold, but Ethereum is increasingly recognized as a functional layer for decentralized applications, asset tokenization, and programmable finance.
One key factor driving institutional interest in Ethereum is its recent transition to a proof-of-stake (PoS) consensus mechanism. This shift has significantly reduced its energy consumption and bolstered its appeal among ESG-conscious investors and funds that prioritize sustainability. As environmental, social, and governance considerations gain prominence in investment decision-making, Ethereum’s greener protocol offers a distinct advantage.
Additionally, the Ethereum ecosystem has been expanding rapidly with Layer 2 scaling solutions like Optimism and Arbitrum, which enhance transaction throughput and reduce gas fees. These advancements make the network more attractive for enterprise-level applications and increase its viability as a scalable blockchain for global use.
Another notable development is Ethereum’s role in tokenizing real-world assets (RWAs). Institutions are increasingly exploring the tokenization of bonds, securities, and even real estate on Ethereum’s blockchain, leveraging its smart contract functionality for greater transparency, efficiency, and liquidity. This trend is expected to become one of the primary use cases for blockchain technology in the coming years.
Furthermore, Ethereum’s developer community is among the most active in the industry. Continuous updates, rigorous security audits, and a commitment to innovation have made it the platform of choice for developers building decentralized applications (dApps), further reinforcing its institutional appeal.
The implications of Ethereum’s rise in digital treasuries extend beyond just investment portfolios. As more corporations integrate blockchain solutions into their operations, Ethereum may become the default infrastructure for enterprise-grade blockchain adoption. From supply chain management to decentralized identity verification and cross-border payments, Ethereum’s versatility is enabling new business models and operational efficiencies.
In summary, the recent data showcasing Ethereum’s lead over Bitcoin in institutional holdings highlights a major evolution in crypto investment strategies. While Bitcoin continues to serve as digital gold, Ethereum is carving out its place as the essential infrastructure layer for the decentralized economy. This paradigm shift is expected to deepen as regulatory clarity improves, technological innovation continues, and institutional capital flows increasingly favor utility-driven assets.
As the crypto market matures, the distinction between store-of-value assets like Bitcoin and utility-driven platforms like Ethereum will likely become more pronounced. Investors—both retail and institutional—are beginning to recognize these differences and are allocating capital accordingly. Ethereum’s lead in digital asset treasuries is not merely a momentary milestone, but a sign of a lasting transformation in how institutions value blockchain technology.