Bitcoin is gaining massive institutional interest over Ethereum as the latter has continued to struggle to recover from recent lows, noting steady withdrawals.
On Friday, May 8, crypto analytics platform CryptoQuant shared data revealing a notable difference in capital flows between Bitcoin and Ethereum.
Bitcoin holdings hit 1,278,000 BTC
While the broad crypto market has recovered from the prolonged volatility that began late last year, Bitcoin has seen renewed interest from both retail and institutional investors.
Following the renewed interest from institutional investors evident in the consistent ETF inflows, Bitcoin holdings have increased significantly since early February.
You Might Also Like
Notably, the data revealed that Bitcoin has achieved a total accumulation of over 92,000 BTC since February to date, marking about a 7.2% increase as its holdings surged from about 1.278 million BTC to 1.370 million BTC.
While Bitcoin has continued to see strong ETF demand, it appears that major funds are viewing Bitcoin as the most secure asset for long-term store of value.
Ethereum investors take caution
On the other hand, Ethereum has experienced the opposite trend over the period as the data revealed that institutional ETH holdings have declined from about 5.93 million ETH to 5.80 million ETH over the same period.
As such, the asset has seen withdrawals of more than 127,000 ETH, marking a decrease of about 2.1% in about three months.
Although the price of Ethereum has also recovered amid the broad crypto market resurgence, Ethereum’s recovery has been less supported by institutional demand. Despite its price stabilizing after the selloff, fund holdings continued trending lower, signaling hesitation among larger investors.
Be the first to comment