MEXCETH Is Next BTC? BlackRock Is Ditching Bitcoin And Buying More Ethereum
Highlights
- BlackRock has acquired $156 million ETH while its BTC purchases stands at $125M.
- The recent interest in the altcoin comes after its IBIT Bitcoin ETF crossed 700,000 BTC.
- A wave of Ethereum treasury companies are driving institutional demand for Ethereum.
Ethereum is now gaining remarkable institutional interest, as evidenced by asset managers like BlackRock showing increasing support. In a significant development, BlackRock’s ETH purchases have surpassed BTC for the first time in months as institutional capital begins to shift into the second-largest cryptocurrency.
Is BlackRock Abandoning BTC For ETH?
According to Arkham Intelligence data, BlackRock is turning its gaze toward Ethereum as its Bitcoin accumulation slows down. The latest data indicates that the largest asset manager has purchased $156 million worth of ETH while its recent BTC haul stood at only $125 million.
While not expressly disclosed, the recent buys appear linked to BlackRock’s Bitcoin and Ethereum ETFs. Previously, BlackRock’s Bitcoin ETF saw its BTC holdings cross 700K as institutional demand surged to new highs.
Flowing from the heightened interest has driven the ETF to become BlackRock’s third most profitable fund. Steady weekly inflows saw the Bitcoin ETF reach the $70 billion milestone in record time, taking only 341 trading days.
However, BlackRock is now turning its gaze to Ethereum, steadily increasing its ETH holdings since the start of Q2. In June, multiple reports emerged that BlackRock is selling Bitcoin to buy Ethereum, with the ETH ETF going on to rack a 12-day inflow streak.
At press time, Ethereum is surging toward the $3,000 mark, rising by nearly 6% over the last day. On the flipside, Bitcoin has gone on to set a new all-time high of $113K, unfazed by rising institutional interest in ETH.
Mirroring The Antics Of Bitcoin Treasury Companies
Ethereum treasury companies are gathering significant steam in recent weeks, toeing the line of their Bitcoin counterparts. SharpLink Gaming has expanded its Ethereum Treasury to 205,634 ETH, with GameSquare accumulating 1,818 ETH to launch its operations.
Previously, Bit Digital announced a conversion of its entire Bitcoin holdings to Ethereum. The combined effect of institutional capital rotating into Ethereum has triggered a comparison between BTC and ETH.
Tesseract CEO James Harris is predicting a meteoric rally of 160% for ETH before the end of the year. Furthermore, Bitmex co-founder Arthur Hayes is calling for $10K ETH price in the short term in a rally driven by heavy institutional interest.
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