Ethereum Primed to Overtake Bitcoin in BlackRock’s Crypto Throne—Is the Flippening Near?

BlackRock’s institutional embrace might finally crack Bitcoin’s dominance—and Ethereum’s gearing up to seize the crown.

The smart contract giant’s institutional appeal—defi integrations, ETF momentum, and that juicy staking yield—could make Wall Street’s old BTC love affair look quaint. Meanwhile, Bitcoin maximalists are sweating over their ‘digital gold’ narrative as ETH eats market share.

One hedge fund manager yawns: ‘Let them fight. We’re busy shorting both during the next Fed meeting.’

In Brief

• BlackRock’s ETHA recorded inflows surpassing IBIT this week, a historic first.
• The Ethereum ETF shows the second highest capital flow among all U.S. ETFs.
• This trend reflects growing institutional interest in Ethereum as an alternative to Bitcoin.
• Bitcoin flows slow while Ethereum maintains a steady investment pace.

Ethereum Attracts More Than Bitcoin at BlackRock

An unexpected shift is stirring the crypto ETF market. This week, BlackRock’s Ethereum ETF, ETHA, attracted more capital than its famous Bitcoin counterpart, IBIT.

This reversal is all the more remarkable as IBIT, touted as the “largest launch in stock market history,” ROSE last month to become BlackRock’s most profitable ETF.

ETHA’s performance does not go unnoticed: it climbs to second place nationally in terms of fund inflows, an unprecedented fact for a product backed by Ethereum.

While Bitcoin struggles to maintain its attraction after weeks of institutional frenzy, Ethereum is now winning over large portfolios.

The numbers speak for themselves and reveal a strategic shift. On July 21, bitcoin ETFs recorded a net outflow of 131 million dollars, ending twelve consecutive days of inflows. Conversely, Ethereum ETFs gathered nearly 297 million dollars on the same day, perfectly illustrating this redistribution of institutional capital.

Has Ethereum’s Time Finally Come?

Why this rush towards Ethereum? Several factors explain this institutional enthusiasm. First, valuation potential.

While Bitcoin continues to reach new historical highs, Ethereum still trades about 23% below its November 2021 record. This considerable margin draws institutional investors who hope to capitalize on a possible catch-up to new peaks.

Next, profitability. Although staking is not yet authorized in Ethereum ETFs in the U.S., several managers, including BlackRock, have already filed applications to include it in their products. This prospect attracts investor attention, tempted by the future possibility of combining exposure to ETH price appreciation with passive income from staking.

Another revealing signal: BlackRock’s head of digital assets recently quit to join SharpLink, a company specializing in ETH treasury. His departure reflects growing conviction around the Ethereum ecosystem within traditional finance.

Numbers confirm this redistribution. Bitcoin dominance has dropped more than 5% while Ethereum rose. Mike Novogratz, a respected figure in the sector, even predicts that Ethereum could surpass Bitcoin in the next three to six months.

This reversal at BlackRock might mark a historic turning point. crypto diversification, long marginal, may become the new institutional norm.

This historic shift at BlackRock could be just the beginning of a deeper transformation. If the trend continues, we will surely witness the emergence of a truly diversified crypto market, where Ethereum finally competes on equal footing with its illustrious predecessor.

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