Family offices show stronger preference for Ethereum ETFs over Bitcoin (2025)

Family offices and professional investors are allocating spot Ethereum (ETH) and Bitcoin (BTC) exchange-traded products (ETPs) differently, with family offices demonstrating a relatively stronger preference for Ethereum.

According to data compiled by Bitwise as of Dec. 31, 2024, family offices and trusts allocate 0.62% of spot Ethereum ETP assets under management (AUM), compared to just 0.13% for spot Bitcoin ETPs.

This represents a nearly fivefold higher allocation share for Ethereum among this investor category, although it does not translate to absolute values.

The difference highlights the divergent institutional forces between the two asset classes. While Bitcoin continues to dominate in total institutional AUM, including hedge funds and investment advisors, Ethereum holds a greater relative appeal among smaller, often more flexible allocators such as family offices.

The broader ETP market composition also reflects these contrasts in investor profiles and risk appetites.

Hedge funds, advisors, and brokerages

Hedge funds account for the largest share of Bitcoin ETP AUM at 36.97%, followed closely by investment advisors at 33.11%. Brokerages add another 14.91%, combining over 85% of total allocations when including smaller contributors such as banks and pension funds.

In contrast, Ethereum ETP ownership is more evenly distributed among brokerages (25.25%), investment advisors (29.79%), and hedge funds (24.74%), with a much larger “Other” category comprising 16.96% of Ethereum ETP AUM.

Banks and pension funds allocate modestly to both Bitcoin and Ethereum products. Bitcoin ETPs hold 1.27% and 1.02% of their AUM from banks and pension funds, respectively, while Ethereum ETPs receive 0.62% and 0.90%.

Private equity firms show similarly limited involvement, allocating 2.90% to Bitcoin and 1.11% to Ethereum.

Despite the relative tilt toward Ethereum among family offices, their total allocation remains a small portion of overall institutional activity. Venture capital and insurance companies report negligible exposure to either ETP class.

Institutional holders vary across assets

The top holders also differ between Bitcoin and Ethereum ETPs. Millennium Management, with $4.42 billion in Bitcoin ETP holdings, ranks first in Bitcoin exposure, followed by Brevan Howard, Jane Street, and Goldman Sachs.

In the Ethereum segment, Goldman Sachs leads with $477 million, followed by Jane Street at $450 million and Millennium Management at $182 million.

Some institutions, such as Jane Street, D.E. Shaw, and Brevan Howard, appear on both lists, indicating broad-based engagement with crypto ETPs.

However, several firms, including Elequin, HBK Investments, SG Americas Securities, and Almitas Capital, are represented only among Ethereum ETP top holders. Conversely, Capula Management and Horizon Kinetics hold material Bitcoin ETP positions but do not appear among Ethereum’s top institutional owners.

This division suggests that while large asset managers and market makers are active in both markets, Ethereum attracts a more distinct group of secondary institutions.

The breakdown affirms Bitcoin’s continued absolute dominance but also reveals a more diversified and distributed investor base in Ethereum’s ETP market.

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