Ethereum price gains momentum as institutions shift focus from Bitcoin

Ethereum is seeing a bullish shift in market sentiment as major institutions pivot away from Bitcoin and begin accumulating ETH at scale. 

The latest catalyst comes from BlackRock and Galaxy Digital, which have significantly increased their Ethereum holdings while reducing exposure to BTC. At the same time, on-chain data reflects surging interest in ETH from large buyers, reinforcing market optimism.

Key takeaways

• BlackRock added 100,000 ETH in less than 24 hours while reducing 4,000 BTC from its holdings.
• Ethereum’s price hovers around $2,600, with institutions attracted to its lower cost and upside potential.
• OTC deals from players like Galaxy Digital signal deep confidence in Ethereum’s growth trajectory.
• Spot Ethereum ETF inflows are accelerating, complementing the institutional accumulation trend.

BlackRock and Galaxy Digital fuel Ethereum’s climb

In a pivotal reallocation of capital, BlackRock increased its Ethereum holdings from 1.3 million to 1.4 million ETH — an addition of $260 million worth of ETH based on current market prices. Concurrently, it slashed its Bitcoin exposure by 4,000 BTC, or $420 million, marking a decisive tilt toward Ethereum. This reflects growing institutional conviction in ETH’s future as a more accessible and versatile asset compared to the now high-priced Bitcoin.

Adding fuel to the rally, Galaxy Digital executed a major OTC transaction involving 108,278 ETH, valued at approximately $283 million. Blockchain analytics platform Lookonchain reports that Galaxy’s OTC wallet initially pulled 89,000 ETH from exchanges before funneling over 108,000 ETH into wallet address "0x0b26," which now holds over $365 million worth of Ethereum. These transactions indicate large-scale, high-confidence bets on Ethereum’s next breakout. 

Institutional confidence drives bullish outlook

As of June 4, 2025, Ethereum is trading at approximately $2,627, maintaining a strong support level above $2,500. Analysts suggest that if ETH can break through the resistance range of $2,925, it may target higher levels around $3,150 to $3,500 in the near term.

Ethereum price dynamics (April - May 2025). Source: TradingView

Analysts attribute Ethereum’s growing appeal to its relatively lower entry point at $2,600 compared to Bitcoin’s $105,000, offering more attractive risk-reward dynamics. This sentiment is further amplified by a spike in spot Ethereum ETF inflows, which provide another route for regulated exposure to ETH. These developments come at a time when investor appetite for diversification within crypto portfolios is at an all-time high.

Conclusion

The shift in institutional capital from Bitcoin to Ethereum signals a changing tide in crypto’s power structure. With BlackRock and Galaxy Digital leading the charge, and spot ETF inflows adding momentum, Ethereum could be entering a new phase of sustained institutional interest.