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Why Institutions Are Suddenly Choosing Ethereum Over Bitcoin?

Published by
Nidhi Kolhapur and Qadir AK

Ethereum is slowly becoming the top choice of institutions. With its real-world utility, rising ETF inflows, and growing role in tokenized finance. Major institutions are shifting from Bitcoin to Ethereum. 

Bit Digital Goes All-In on ETH

Recently, Bit Digital made a bold move by shifting its entire corporate strategy from Bitcoin to Ethereum. After a $172 million equity raise, the company has now accumulated over 100,000 ETH, making it one of the largest Ethereum-holding corporations globally.

Bit Digital CEO said in an interview with CNBC that “Ethereum is the next wave.” With real economic activity, a massive developer base, and growing stablecoin and tokenization volume, he sees ETH as a new kind of strategic asset that captures value. 

Ethereum Takes the Center Stage at Cannes

Ethereum also took the spotlight in Cannes as the Ethereum Community Conference (EthCC) turned the famous film venue into a hub for crypto leaders and builders. The event showcased how Ethereum is becoming the backbone of modern finance.

Recently, Robinhood also made headlines by launching tokenized U.S. stocks on Ethereum’s Arbitrum network for European users. This news pushed its stock above $100, which shows rising support for Ethereum from major players. Besides, Local governments are also exploring blockchain adoption.

Trad-Fi Giants Choosing Ethereum

Deutsche Bank is building a tokenization platform on Ethereum’s zkSync to support asset managers. Meanwhile, Coinbase and Kraken are preparing to enter the tokenized stock market. BlackRock’s BUIDL fund is already live on Ethereum, offering real-time yields. 

Even with newer blockchains boasting speed and low fees, Ethereum continues to stand out as a reliable network. Around 65% of USDC transactions still run on Ethereum, and it holds nearly half the stablecoin market, according to CoinGecko. 

CNBC reported that Vitalik Buterin said institutions value Ethereum not for its speed, but for its reliability, privacy, and long-term trust.

Ethereum is up nearly 3% this week, and several Ethereum-linked stocks also surged alongside it. Eric Conner shared recently that corporate demand for Ethereum is exploding. Major firms are rapidly accumulating ETH, with nearly 388,000 ETH scooped up by SharpLink, Bit Digital, and BitMine combined. With only 70,000 ETH minted this month, demand is far outpacing supply. 

Institutional Interest Grows With ETF Inflows

ETH ETFs are also seeing steady inflows. Data from Coinglass shows that ETH-focused funds have seen two straight months of net inflows. But ETH ETFs remain small at $11B, a fraction of Bitcoin’s $138B. The gap is big, but the momentum is shifting.

Data from Glassnode shows that Ethereum spot ETFs have seen positive flows for 8 straight weeks, with over 61,000 ETH added, which shows steady investor demand.

Although its price has stayed relatively flat and is facing more competition from faster chains like Solana, big players are still choosing ETH because of its real-world use.

Breakout For Ethereum?

ETH peaked in 2017 and 2021. Analysts believe that it is showing the same breakout pattern in 2025. The structure looks strong, with a parabolic upside potentially on the way. Analyst Carl Moon says that Ethereum needs to break above $2,700 soon or it could risk a sharp drop from a rising wedge pattern. 

Ethereum is currently trading at $2,553, down 0.8% in the last 24 hours. 

FAQs

Why is Ethereum becoming a top choice for institutions?

Ethereum is attracting institutions due to its real-world utility, increasing ETF inflows, and growing role in tokenized finance. Its robust smart contract capabilities, large developer base, and significant stablecoin/tokenization volume position it as a “strategic asset” for modern finance, valued for reliability and long-term trust.

How are Ethereum ETFs performing and impacting institutional interest?

Ethereum spot ETFs have seen positive inflows for eight consecutive weeks, with over 61,000 ETH added. While still smaller than Bitcoin ETFs (ETH ETFs at $10.712 billion vs. Bitcoin’s $138 billion), the consistent inflows and 11 straight weeks of positive flows demonstrate growing and steady investor demand from institutions, signaling a shift in momentum towards Ethereum.

Is Ethereum a good investment?

As the altcoin season begins, the short-term gains make Ethereum a lucrative buying option. However, the long-term promises of this programmable blockchain make it a viable long-term crypto investment. 

Nidhi Kolhapur and Qadir AK

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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