BlackRock’s Bold Bet: Ethereum Inflows Crush Bitcoin 5X as Institutional Demand Shifts

Wall Street's crypto love affair takes a sharp turn—Ethereum just stole Bitcoin's lunch money.

BlackRock's latest move screams conviction: a 5-to-1 ETH/BTC buying spree that's shaking up institutional portfolios. The world's largest asset manager isn't dipping toes—it's cannonballing into DeFi's favorite fuel.

What's driving the frenzy? Try yield-hungry treasury teams chasing staking rewards while pretending they 'believe in Web3.' Meanwhile, Bitcoin maximalists are coping hard—turns out 'digital gold' gets boring when altcoins print actual returns.

One hedge fund MD summed it up: 'We're not married to any chain, just whichever makes our quarterly numbers look less embarrassing.' Ah, finance—where ideals go to die.

TLDR

• BlackRock has invested $547 million in Ethereum, surpassing its Bitcoin investment by $50 million.
• The Ethereum ETF recorded stronger inflows than the Bitcoin ETF on July 17.
• BlackRock is buying five times more Ethereum than Bitcoin when adjusted by market cap.
• The firm’s Ethereum holdings have increased steadily since the beginning of July.
• Nasdaq has filed to allow staking in BlackRock’s Ethereum ETF, boosting investor interest.

Institutional activity around ethereum continues to climb as BlackRock increases its exposure to ETH at a rapid pace. On July 17, the asset manager registered significantly higher inflows into its Ethereum ETF than its Bitcoin ETF. With over $547 million in ETH purchases, BlackRock has shown a clear preference for Ethereum over Bitcoin.

The difference between Ethereum and Bitcoin holdings now stands at $50 million in favor of ETH. In contrast, BlackRock’s Bitcoin ETF only recorded $497 million in inflows during the same period. These figures confirm a growing trend as institutional investors appear to favor ETH over BTC this month.

According to data shared by Arkham Intelligence, BlackRock is purchasing Ethereum at a rate five times greater than Bitcoin when adjusted by market cap. The shift in preference highlights the asset manager’s increasing interest in Ethereum’s utility and evolving market structure. July’s consistent ETH inflows have strengthened this momentum.

BLACKROCK IS STILL BUYING MORE ETH THAN BTC

BlackRock’s purchase of over half a billion dollars of ETH ($547M) exceeded its bitcoin inflow ($497M) by $50 Million USD.

Weighted by market cap, BlackRock is buying over 5 TIMES the amount of ETH compared to BTC. pic.twitter.com/fnvjvKXQ0N

— Arkham (@arkham) July 18, 2025

Ethereum ETF Gains Traction as Inflows Surge

BlackRock recorded its strongest weekly Ethereum ETF inflow last week, signaling increased institutional confidence in the asset. The iShares Ethereum ETF gathered $546.70 million in new capital, outpacing Bitcoin’s ETF inflow. Nasdaq’s proposed amendment to allow staking in the Ethereum ETF may have further boosted demand.

This adjustment would replace the original clause that restricted staking with one that permits it, subject to regulatory approval. Optimism surrounding this change has influenced institutional strategies, encouraging higher ETH exposure. BlackRock’s filing to support staking aligns with broader industry movements favoring Ethereum’s transition to proof-of-stake.

ETH’s market performance has added momentum, with the token rising to $3,624 at the time of writing. Over the past month, Ethereum gained 46%, supported by whale activity and growing accumulation trends. Dormant wallets have also reactivated, reflecting revived long-term interest among large holders.

BlackRock’s Bitcoin Exposure Lags Behind ETH

While Ethereum inflows soared, BlackRock’s Bitcoin ETF saw $497.30 million in net investments on July 17. This figure, though substantial, falls short of the Ethereum ETF by $50 million. The difference is significant, given Bitcoin’s dominance in past institutional portfolios.

Market data confirms a slower increase in Bitcoin interest compared to ETH, especially among major asset managers like BlackRock. Despite Bitcoin’s established market position, ETH is capturing more attention from financial institutions. BlackRock’s recent moves support the trend of increasing ETH allocations.

In early July, BlackRock held $125 million in Bitcoin, trailing behind its $156 million in Ethereum holdings. Since then, ETH’s share has continued to grow, reflecting changing investment priorities. Institutional interest appears to be shifting toward Ethereum’s expanding use cases and future growth potential.