Family Offices Favor Ethereum Over Bitcoin in ETP Allocations

According to PANews, family offices and professional investors show differing preferences when allocating spot Ethereum and Bitcoin ETPs, with family offices favoring Ethereum. Data from Bitwise as of December 31, 2024, reveals that family offices and trusts allocate 0.62% of their AUM to spot Ethereum ETPs, compared to just 0.13% for spot Bitcoin ETPs, making Ethereum allocations nearly five times higher. In institutional allocations, hedge funds account for 36.97% of Bitcoin ETPs, investment advisors for 33.11%, and brokerage firms for 14.91%, with these groups and smaller contributors like banks collectively exceeding 85% of total allocations. Ethereum ETP ownership is more balanced, with brokerage firms, investment advisors, and hedge funds holding 25.25%, 29.79%, and 24.74%, respectively, while the 'other' category accounts for 16.96%. Banks and pension funds maintain moderate allocations to both Bitcoin and Ethereum products, with their AUM shares in Bitcoin ETPs at 1.27% and 1.02%, and in Ethereum ETPs at 0.62% and 0.90%, respectively. Private equity firms have limited participation, with allocations of 2.90% to Bitcoin and 1.11% to Ethereum. The largest holders of Bitcoin and Ethereum ETPs differ as well. Millennium Management leads with $4.42 billion in Bitcoin ETP holdings, followed by Brevan Howard, Jane Street, and Goldman Sachs. In the Ethereum sector, Goldman Sachs leads with $477 million, followed by Jane Street with $450 million and Millennium Management with $182 million. Institutions like Jane Street, D.E. Shaw, and Brevan Howard appear on both lists, indicating their broad involvement in cryptocurrency ETPs.