Family offices and professional investors are managing their allocations of spot Ethereum (ETH) and Bitcoin (BTC) exchange-traded products (ETPs) differently, with family offices showing a notably stronger inclination towards Ethereum.
Data collected by Bitwise as of December 31, 2024, reveals that family offices and trusts have allocated 0.62% of their assets under management (AUM) to spot Ethereum ETPs, while spot Bitcoin ETPs attract merely 0.13%.
This indicates a nearly fivefold higher allocation percentage for Ethereum among this investor demographic, although this does not equate to larger absolute figures.
The discrepancy underscores the contrasting institutional dynamics within the two asset classes. Although Bitcoin continues to lead in total institutional AUM, encompassing hedge funds and investment advisors, Ethereum appears to be more appealing to smaller, often more adaptable investors like family offices.
The overall composition of the ETP market also illustrates these differences in investor types and their respective risk profiles.
Hedge funds, advisors, and brokerages
Hedge funds represent the largest segment of Bitcoin ETP AUM at 36.97%, closely followed by investment advisors at 33.11%. Brokerages contribute an additional 14.91%, collectively accounting for over 85% of total allocations when factoring in smaller players like banks and pension funds.
On the contrary, Ethereum ETP ownership is more evenly spread across brokerages (25.25%), investment advisors (29.79%), and hedge funds (24.74%), along with a significantly larger “Other” category making up 16.96% of Ethereum ETP AUM.
Banks and pension funds have made modest allocations to both Bitcoin and Ethereum products. Bitcoin ETPs capture 1.27% and 1.02% of their AUM from banks and pension funds respectively, while Ethereum ETPs receive 0.62% and 0.90%.
Private equity firms mirror this limited engagement, allocating 2.90% to Bitcoin and just 1.11% to Ethereum.
Even with the relative preference for Ethereum among family offices, their total investments represent a minor fraction of the overall institutional activity. Venture capital and insurance firms show negligible exposure to either ETP category.
Institutional holders vary across assets
The leading holders of Bitcoin and Ethereum ETPs also vary significantly. Millennium Management tops the list with $4.42 billion in Bitcoin ETP holdings, followed by Brevan Howard, Jane Street, and Goldman Sachs.
In the Ethereum sector, Goldman Sachs is the leader with $477 million, trailed by Jane Street at $450 million and Millennium Management at $182 million.
Several institutions, including Jane Street, D.E. Shaw, and Brevan Howard, appear on both lists, signaling broad engagement with crypto ETPs.
However, other firms, such as Elequin, HBK Investments, SG Americas Securities, and Almitas Capital, are found exclusively among the top Ethereum ETP holders. Conversely, Capula Management and Horizon Kinetics maintain substantial positions in Bitcoin ETPs but are not represented among Ethereum’s prominent institutional stakeholders.
This separation indicates that while major asset managers and market makers are active in both markets, Ethereum draws a more unique set of secondary institutions.
The analysis confirms Bitcoin’s ongoing dominance in total value while also uncovering a broader and more diverse investor base within the Ethereum ETP market.
