Family offices and professional investors exhibit distinct preferences when it comes to allocating funds among spot Ethereum and Bitcoin ETPs (Exchange-Traded Products). Notably, family offices show a strong inclination towards Ethereum, based on recent data from Bitwise as of December 31, 2024. This data indicates that family offices and trusts allocate 0.62% of their assets under management (AUM) to spot Ethereum ETPs, significantly higher than the mere 0.13% directed towards spot Bitcoin ETPs, resulting in Ethereum allocations that are nearly five times as high as those for Bitcoin.
In institutional allocations, the landscape is quite diverse. Hedge funds represent a substantial share of Bitcoin ETP investments, accounting for 36.97%, while investment advisors contribute 33.11% and brokerage firms add 14.91%. Together, these categories and smaller participants like banks surpass 85% of total allocations within Bitcoin ETPs.
On the other hand, the ownership structure for Ethereum ETPs appears more balanced. Here, brokerage firms, investment advisors, and hedge funds hold significant portions of 25.25%, 29.79%, and 24.74%, respectively. The 'other' category encompasses about 16.96% of the holdings, showcasing a more collaborative interest across varied institutional segments. Furthermore, banks and pension funds maintain moderate allocations to both Bitcoin and Ethereum products.
Their contributions reflect AUM shares in Bitcoin ETPs of 1.27% and 1.02%, while their shares in Ethereum ETPs stand at 0.62% and 0.90%, respectively. Private equity firms, however, have a limited presence in this market, with their allocations registering at 2.90% for Bitcoin and 1.11% for Ethereum. The leading holders of Bitcoin and Ethereum ETPs further illustrate the competitive landscape of cryptocurrency investments.
Millennium Management emerges as the frontrunner with an impressive $4.42 billion in Bitcoin ETP holdings. This is followed by notable firms such as Brevan Howard, Jane Street, and Goldman Sachs. In the Ethereum segment, Goldman Sachs takes the lead with $477 million, succeeding Jane Street, which holds $450 million, and Millennium Management with $182 million.
The presence of renowned institutions like Jane Street, D.E. Shaw, and Brevan Howard on both lists emphasizes their significant roles and contributions to the cryptocurrency ETP market, signifying a broad interest and investment in these financial instruments..