Key Points
- Ethereum is experiencing less demand from institutional investors compared to Bitcoin.
- Despite this, Ethereum maintains a higher total address count, indicating a growing ecosystem.
Bitcoin’s dominance over Ethereum in the investment market is evident, as institutional demand for Bitcoin outpaces that for Ethereum.
Bitcoin vs Ethereum: Institutional Demand
The recent introduction of Spot Ethereum ETFs has not generated the same level of market excitement as Bitcoin. This is in line with the current political push favoring Bitcoin. A recent QCP analysis hints that Ethereum might be at a disadvantage when it comes to liquidity in the macro capital markets, with Bitcoin being the preferred choice.
Comparing the performance of Bitcoin and Ethereum as Spot ETF assets provides a clearer picture. In the last two weeks, Bitcoin ETFs netflows averaged nearly 300,000 BTC, while Ethereum had a total spot ETF netflow of -114,350 ETH. The data points to a stronger demand for Bitcoin in the spot ETF segment.
Ethereum’s Strengths
Despite the stronger demand for Bitcoin, Ethereum holds its own in other areas. It boasts a significantly higher total address count at 116.97 million, compared to Bitcoin’s 52.67 million. This indicates the expansive nature of Ethereum’s ecosystem, one of the main reasons behind its recent Spot ETF approvals.
Bitcoin’s early lead does provide it with a clear advantage. However, Ethereum also presents an opportunity that institutional investors are beginning to recognize. It’s worth noting that Ethereum ETFs are relatively new, having been around for only a few weeks, while Bitcoin ETFs have been in existence for months.
The rest of 2024 should offer more insight into Ethereum’s performance in the macro capital market. Current findings suggest Ethereum is at a slight disadvantage against Bitcoin when it comes to securing institutional liquidity. This could also explain the disparity in price action between BTC and ETH.
