Key Points
Ethereum is currently experiencing less demand from institutional investors compared to Bitcoin. However, Ethereum maintains a higher total address count, indicating a growing ecosystem. Bitcoin’s dominance in the investment market is evident, with institutional demand for Bitcoin outpacing that for Ethereum.
Bitcoin vs Ethereum: Institutional Demand
The introduction of Spot Ethereum ETFs has not sparked the same level of market excitement as Bitcoin ETFs. This trend aligns with the current political push favoring Bitcoin. According to a recent QCP analysis, Ethereum may be at a disadvantage in terms of liquidity in the macro capital markets, with Bitcoin being the preferred choice.
Comparing the performance of Bitcoin and Ethereum as Spot ETF assets reveals the following:
- In the past two weeks, Bitcoin ETFs experienced net flows averaging nearly 300,000 BTC.
- In contrast, Ethereum had a total spot ETF net flow of -114,350 ETH.
This data indicates stronger demand for Bitcoin in the spot ETF segment compared to Ethereum.
Ethereum’s Strengths
Despite Bitcoin’s stronger demand, Ethereum demonstrates notable strengths. It has a significantly higher total address count, currently at 116.97 million, compared to Bitcoin’s 52.67 million. This suggests an expansive Ethereum ecosystem, which has contributed to its recent Spot ETF approvals.
While Bitcoin’s early lead gives it a clear advantage, Ethereum presents opportunities that institutional investors are starting to recognize. It is also important to note that Ethereum ETFs are relatively new, having been available for only a few weeks, whereas Bitcoin ETFs have been around for several months.
The remainder of 2024 is expected to provide further insights into Ethereum’s performance in the macro capital market. Current findings suggest Ethereum is slightly disadvantaged compared to Bitcoin in securing institutional liquidity, which may explain the difference in price action between BTC and ETH.
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