Recently, the intense institutional demand for Bitcoin has shifted to Ethereum. As the number of institutions holding, staking, and purchasing Ethereum treasury strategies increases rapidly, the price of ETH is predicted to reach double-digit figures.
At this point, Bitwise Chief Investment Officer (CIO) Matt Hougan evaluated the growing demand in Ethereum.
Speaking on The Wolf of All Streets podcast, Bitwise’s CIO said that institutional investors are completely skipping Bitcoin and moving towards Ethereum.
Stating that Ethereum is the latest trend in the market, Matt Hougan stated that ETH has attracted major institutional interest and is forcing investors to forget about Bitcoin for now.
Stating that this change also affected ETFs, Hougan said that Etheruem ETFs witnessed a huge increase, recording 10 times more flow than Bitcoin ETFs.
“Ethereum ETFs attracted $4 billion in investment last month and have recorded annual inflows of $50 billion.
During the same period, Bitcoin ETFs experienced outflows.
So, almost all the new money is flowing into Ethereum. Professional investors are skipping Bitcoin entirely and moving entirely into ETH.”
Bitwise CIO Hougan explained the reasons why institutional investors prefer Ethereum and listed them as follows: “1- ETH's tokenization story, 2- the growth potential of stablecoins and 3- they prefer ETH because of its cash flow (income-generating) model.”
Finally, Hougan added that the constant buying pressure on Ethereum will continue from now on.
*This is not investment advice.
