BlackRock reallocates $366M from Ethereum to Bitcoin as institutional demand for BTC increases, with Ethereum seeing $17M in outflows.
BlackRock has sold Ethereum and invested $366 million in Bitcoin. This shift marks a significant change in strategy.
Institutions are moving from Ethereum to Bitcoin. BlackRock’s decision highlights Bitcoin’s growing appeal in large portfolios. The move shows a preference for Bitcoin over Ethereum. It reflects broader trends in institutional asset management.
Ethereum is seeing reduced institutional interest. Bitcoin, however, remains a favored asset. This trend is clear in BlackRock’s recent moves. The reallocation of funds signals Bitcoin’s dominance in the market.
BlackRock Shifts $366M to Bitcoin, Moves Away from Ethereum
Data from Arkham Intelligence shows Bitcoin’s iShares Trust received $366.2 million in net inflows. At the same time, BlackRock’s Ethereum Trust posted outflows of $17.39 million. These shifts indicate a clear movement from Ethereum to Bitcoin among large investors. BlackRock’s reallocation is part of a larger trend where more capital is moving into Bitcoin.
Other funds, like Fidelity’s FBTC and Bitwise’s BITB, have also seen inflows. These funds, however, did not experience any significant withdrawals from Ethereum products.
BlackRock’s Ethereum product is the only major fund showing significant outflows. This shift further highlights Bitcoin’s increasing dominance in institutional portfolios.
Bitcoin ETF Inflows and Market Impact
Bitcoin’s price rose by 0.54% to $116,162 on September 12. It has shown a 4.95% gain over the past week.
Bitcoin’s performance over the past year has been impressive, up 102%. These strong numbers highlight Bitcoin’s appeal to institutional investors as a potential hedge against inflation.
Ethereum, on the other hand, saw a 4.01% increase in the last 24 hours. Ethereum’s weekly performance was even better, rising by 8.05%.
However, Bitcoin’s steady growth continues to outperform Ethereum in terms of institutional interest. The shift in flows is evidence of Bitcoin’s dominance.
Institutional Preference for Bitcoin
Ethereum has posted a 98.5% increase in price over the last year. While Ethereum continues to show growth, it has failed to attract the same institutional attention as Bitcoin. Ethereum is seeing strong short-term gains but remains behind Bitcoin in the eyes of major investors.
Bitcoin’s long-term growth and stability have made it the go-to digital asset for institutions. Its position as the largest cryptocurrency by market cap is a major factor in its favor. While Ethereum has its strengths, Bitcoin’s role as a store of value continues to dominate.
