Ethereum is making headlines as major financial institutions begin to favor it over Bitcoin, signaling a notable change in the crypto investment landscape. Recent moves by industry giants like BlackRock and Galaxy Digital have put Ethereum in the spotlight, with both firms increasing their ETH holdings while reducing their exposure to Bitcoin. This trend is supported by on-chain data showing a surge in large-scale Ethereum purchases, reflecting growing confidence in the asset’s future.
Institutional Moves: BlackRock and Galaxy Digital Lead the Way
In a significant shift, BlackRock boosted its Ethereum holdings from 1.3 million to 1.4 million ETH in less than 24 hours, adding approximately $260 million worth of ETH at current prices. At the same time, the firm reduced its Bitcoin position by 4,000 BTC, equivalent to about $420 million. This reallocation highlights a growing belief among institutional investors that Ethereum offers a more accessible entry point and greater versatility compared to Bitcoin, which is currently trading at $105,000 per coin.
Galaxy Digital also made headlines with a major over-the-counter (OTC) transaction, acquiring 108,278 ETH valued at around $283 million. According to blockchain analytics, Galaxy’s OTC wallet initially withdrew 89,000 ETH from exchanges before transferring over 108,000 ETH to a single wallet address, now holding more than $365 million in Ethereum. These large transactions underscore the high level of confidence some institutions have in Ethereum’s growth potential.
Ethereum price dynamics (April – May 2025). Source: TradingView
Market Impact and Price Outlook
As of June 4, 2025, Ethereum is trading near $2,627, maintaining a solid support level above $2,500. Analysts suggest that if ETH can break through the resistance zone around $2,925, it could target higher levels between $3,150 and $3,500 in the short term. The relatively lower price of Ethereum compared to Bitcoin is attracting institutions looking for better risk-reward opportunities and portfolio diversification.
Another factor fueling optimism is the increase in spot Ethereum ETF inflows, which provide regulated exposure to ETH and further validate its growing institutional appeal. This trend comes at a time when investors are seeking new ways to diversify their crypto holdings, and Ethereum’s utility and accessibility make it an attractive option.
What This Means for Crypto Investors
The recent pivot by major players like BlackRock and Galaxy Digital suggests a broader shift in the crypto market’s power dynamics. With institutional capital flowing into Ethereum and spot ETF inflows on the rise, ETH could be entering a new phase of sustained interest from large investors. While the market remains volatile and all investments carry risk, Ethereum’s current momentum is hard to ignore for anyone following the evolution of digital assets.
