Family offices prefer Ethereum ETFs over Bitcoin products
Family offices, structures dedicated to managing large family fortunes, are showing a growing preference for Ethereum ETFs (spot ETPs) over Bitcoin-based products. According to the quarterly report from Bitwise Asset Management, published with data up to December 31, 2024, Ethereum ETFs account for 0.62% of the total allocation in this segment, while Bitcoin ETFs account for just 0.13%. Although these percentages are small when compared to larger funds, this difference reveals a relevant fact: smaller institutional investors with greater strategic flexibility are positioning themselves more frequently in Ethereum products. This contrasts with large players, such as hedge funds and investment consultants, who continue to prioritize Bitcoin as their main institutional asset.
In this article, we will discuss:
Bitcoin still dominates among large funds
In Bitcoin ETFs, the institutional investor base is highly concentrated. Hedge funds lead the way with 36.97% of the total allocation, followed closely by investment advisors at 33.11% and brokerages at 14.91%. Together, these three groups account for over 85% of all institutional exposure to Bitcoin via ETPs. Other categories, such as banks (1.27%), pension funds (1.02%) and private equity (2.90%), still maintain limited participation.
Ethereum ETF structure is more balanced
In the Ethereum ETF market, on the other hand, the distribution among the different types of institutional investors is more diverse. Investment advisors lead with 29.79%, followed by brokerages (25.25%) and hedge funds (24.74%). The “Others” category appears with 16.96%, evidencing a more plural and segmented base. Banks and pension funds, despite being discreet, slightly increased their presence in Ethereum, with 0.62% and 0.90%, respectively. Private equity adds 1.11%.
Major institutions reveal segmentation between assets
Millennium Management leads the ranking of institutional exposure to Bitcoin ETFs, with $4.42 billion invested. Next in line are Brevan Howard, Jane Street and Goldman Sachs. The latter, however, also appears as the largest institutional holder of Ethereum ETFs, with an allocation of $477 million. Among the investors focused on Ethereum, Jane Street, Schonfeld Strategic Advisors, Elequin and Almitas Capital stand out — the latter two exclusively in ETH ETPs, reinforcing the segmented nature of investors attracted to this asset. Names like Capula Management and Horizon Kinetics are only among the largest holders of Bitcoin ETFs, signaling more conservative profiles or aligned with BTC as an institutional reserve.
Family offices and the search for regulated growth
The relatively larger allocation of family offices to Ethereum appears to reflect a behavioral shift among less risk-averse wealth managers who prioritize upside potential and access to regulated products. The fluidity of the Ethereum ecosystem and its applicability to sectors such as DeFi and tokenization may be influencing this preference. This movement, although still initial, indicates that Ethereum is gaining space as a viable institutional asset in more agile portfolios — and can serve as a thermometer for the evolution of demand in future market cycles.