Family Offices Show Strong Preference for Ethereum Over Bitcoin in ETP Allocations

Family Offices Favour Ethereum Over Bitcoin in ETP Allocations

While Bitcoin remains the heavyweight in institutional portfolios, a quieter trend is taking shape among smaller, more agile investors.

Family offices and trusts are showing a clear lean toward Ethereum in their allocation of spot crypto exchange-traded products (ETPs), according to Bitwise data as of 31 December 2024.

Family offices, known for their flexible decision-making and long-term view, now hold 0.62% of spot Ethereum ETP assets under management (AUM).

Spot Ethereum ETP vs Spot Bitcoin ETP

That’s nearly five times higher than their 0.13% allocation to spot Bitcoin ETPs.

Although this doesn't reflect the absolute investment volume, it points to a stronger proportional interest in Ethereum from this investor category.

Who Owns the Bulk of Bitcoin ETPs?

Hedge funds lead the pack in Bitcoin ETP holdings, accounting for a significant 36.97% of total AUM.

Investment advisors follow closely at 33.11%, with brokerages contributing 14.91%.

When smaller players like banks and pension funds are included, these three groups together hold over 85% of total Bitcoin ETP assets.

In contrast, banks and pension funds have kept their exposure to Bitcoin relatively low.

Banks hold 1.27% of Bitcoin ETP AUM, while pension funds are slightly behind at 1.02%.

Private equity firms also remain cautious, allocating just 2.90% to Bitcoin ETPs.

How Ethereum ETP Ownership Is Spread Out?

Ethereum’s investor base is more evenly distributed.

Brokerages hold 25.25% of Ethereum ETP assets, while investment advisors manage 29.79% and hedge funds 24.74%.

The remaining 16.96% falls under the “Other” category, signalling a broader range of participants.

Banks and pension funds remain reserved here as well, with Ethereum allocations of 0.62% and 0.90% respectively.

Private equity firms invest just 1.11% into Ethereum-linked ETPs.

Meanwhile, venture capital and insurance firms have negligible exposure to either crypto asset class.

Institutional Interest Splits Across Bitcoin And Ethereum

The list of top institutional holders shows that some firms are active across both markets, while others specialise.

Millennium Management tops Bitcoin holdings with $4.42 billion, followed by Brevan Howard, Jane Street, and Goldman Sachs.

In the Ethereum segment, Goldman Sachs leads with $477 million, followed by Jane Street at $450 million and Millennium Management with $182 million.

Several names — including Jane Street, D.E. Shaw, and Brevan Howard — appear on both lists, indicating a broad interest in crypto ETPs.

However, firms like Capula Management and Horizon Kinetics are only visible as holders of Bitcoin.

On the flip side, Elequin, HBK Investments, SG Americas Securities, and Almitas Capital are exclusive to Ethereum’s top investor list.

This reflects a key difference in market participation.

Although some major asset managers are active in both Bitcoin and Ethereum ETPs, Ethereum appears to be drawing a more varied group of smaller, niche-focused firms.

Why Are Institutions Divided On Crypto Exposure?

The division in institutional participation may stem from differing risk appetites and strategic priorities.

Bitcoin’s appeal lies in its status as a store of value and its established track record.

Ethereum, on the other hand, offers a more dynamic platform for innovation, particularly in areas like decentralised finance and smart contracts.

As institutional interest continues to evolve, Ethereum’s more balanced investor mix could offer clues about the future direction of crypto allocations—especially among those willing to take calculated bets on emerging opportunities.