Ethereum Overtakes Bitcoin in Corporate Holdings As Institutional Appetite Skyrockets

Ethereum treasury companies have overtaken their Bitcoin counterparts in terms of the percentage of total supply of each asset held. The rising institutional appetite in the Ether has seen these companies acquire 4% of ETH’s total supply, compared to the 3.6% of Bitcoin’s supply held by treasury firms.

Ethereum’s Institutional Appeal Surpasses Bitcoin

Digital asset treasury companies (public entities that hold cryptocurrency on their balance sheets) have been moving their attention from Bitcoin to Ethereum (ETH). According to data from blockchain analytics firm Artemis, for the first time in history, Ethereum treasuries have surpassed Bitcoin treasuries in the share of the supply owned by DATs.

According to the data from Artemis, 4% of Ethereum’s total supply is now held by corporate entities, compared to 3.6% of Bitcoin’s supply. This surge of interest in the Ether from corporate entities marks a significant milestone for the adoption of Ethereum.

The milestone comes on the back of massive ETH purchases from both new entrants and established companies expanding their digital asset portfolios beyond Bitcoin. BitMine is currently the leading corporate entity, holding around 3.17 million ETH, or 2.74% of Ethereum’s total circulating supply.

Other companies like SharpLink Gaming have rapidly accelerated their Ethereum purchases, preferring the ETH to Bitcoin. This trend is also present in other markets, including Asia, where firms like Quantum Solutions have expanded their Ethereum holdings to 3,865.8 tokens.

Why ETH Corporate Holdings Have Been Going Through the Roof

About two months ago, the digital asset treasuries of Bitcoin were twice as big as Ethereum’s custody. Since then, firms have rapidly accelerated their Ethereum purchases, as they now place priority on the long-term value and utility that ETH provides.

Noah Roy, Ryze Labs’ investment analyst, has said that the rise in institutional accumulation and the growth of Ethereum-based treasuries hint at the maturing demand base of Ethereum. He adds that it shows the growing confidence investors have in Ethereum’s long-term role in digital finance.

According to the analyst and Head of Research at OnChain Foundation, Leon Waidmann, the three main trends on the Ethereum network boosting institutional interest in ETH are staking yield, layer-2 solution growth, and RWA tokenization.

Waidmann believes that the growing trend of Ethereum DATS is far from being over. He predicts that because “serious money” now prefers ETH to BTC, the momentum and purchases will likely continue. 

With this interest, many analysts believe that Ethereum, at its current price of around $4,000, is undervalued. Tom Lee, the chairman of BitMine, the biggest corporate ETH holder, predicts that the Ethereum price will reach $10,000-12,000 before the end of 2025. This sentiment is also shared by several top analysts in the crypto space.

In Summary

Digital asset treasuries, or DATs, have been growing in popularity because they offer investors the convenience of benefiting from the volatility of cryptocurrencies without directly holding them. 

While Bitcoin had the early start in DATs, Ethereum has grown meteorically in recent months as institutions perceive greater opportunity in the second-largest crypto. If this trend continues, like experts believe it will, then the Ethereum price could rise higher.