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Bitcoin Dominates Institutional Inflows as Ethereum Struggles
Bitcoin continues to lead on the institutional market, as fund balances, ETF inflows, and corporate accumulation continue to favor $BTC over Ethereum. Data from CryptoQuant published on May 7 showed that fund assets grew from 1.278 million $BTC on February 7 to 1.370 million $BTC on May 5. This added 92,116 $BTC, a 7.21% increase, with the asset’s price rising from $69,249 to $80,874.
Fund Assets Show Higher Demand for $BTC
CryptoQuant analyst MorenoDV noted that Bitcoin regained institutional confidence more quickly, while Ethereum still showed signs of doubt. Data showed that large investors increased exposure after the decline in early February.
Funds decreased due to price weakness, but the subsequent recovery was stronger and more stable. By May, balances reached new highs for the period. This trend showed that institutions were not just holding their positions.
Source: X
They increased exposure as $BTC surged back above $80,000. This shift helped explain why Bitcoin remained the preferred institutional asset during the latest market recovery. The increase in fund volumes was accompanied by a growing regulated demand for products.
Weakness in $ETH/$BTC Signals Slower Conviction
Meanwhile, Ethereum did not replicate the same momentum. A chart published by trader Daan Crypto Trades showed a decline in $ETH/$BTC after a rejection from the daily 200-day exponential moving average.
The pair traded around 0.0287 $BTC, below the 0.0300 level. It also remained below the daily 200EMA at 0.03134 and 200MA at 0.0320. This move was significant as $ETH/$BTC tracks Ethereum’s strength relative to Bitcoin.
Source: X
When the pair declines, it means $BTC is outperforming $ETH in relative terms. Daan linked the weakness in the pair to stronger Bitcoin flows from STRC and demand for spot ETFs. These channels provided $BTC with a clearer institutional bet.
Strategy noted that demand for STRC contributed to a 9.4% yield increase for $BTC and a $5 billion increase in $BTC holdings in April. As of publication, the company held approximately 818,334 $BTC worth nearly $65.2 billion. This position accounted for about 3.90% of the total $BTC supply, keeping Strategy as the largest corporate holder.
ETF Inflows Confirm the Gap
ETF data also confirmed the same trend. Farside investors showed that U.S. spot Bitcoin ETFs recorded net inflows of $629.8 million on May 1. They added another $532.3 million on May 4, with demand from BlackRock with IBIT and FBTC from Fidelity.
Ethereum ETFs also saw inflows, but the amounts were smaller. They collected $61.3 million on May 4, $97.5 million on May 5, and $11.5 million on May 6. The difference showed that regulated fund flows still favored Bitcoin. Overall, Ethereum attracted fresh capital but not enough to close the institutional demand gap.
