Bitwise CIO Matt Hougan has stated that a growing number of professional investors are skipping Bitcoin and turning directly to Ethereum as their first crypto investment. This has long been regarded as the entry point into digital assets, and Bitcoin is now sharing the spotlight with Ethereum.
Ethereum Emerging As First Choice For Professional Investors
In Ripdoteth’s update on X, Bitwise CIO Matt Hougan has revealed on live that an interesting trend is emerging. He claims that many professional investors are bypassing Bitcoin and going directly to Ethereum, whose utility in decentralized finance, smart contracts, and Web3 applications is increasingly drawing institutional capital. The reason he explains is rooted in how institutions already think about portfolio construction.
According to the expert, most professional investors don’t actually own gold. This is because Gold is considered a niche asset, with perhaps only 15% to 20% of institutions holding it, while the vast majority of 80% or more invest in stocks and bonds.
Since Bitcoin is often framed as digital gold, its appeal is limited for many professionals who never allocated to gold in the first place. “A lot of people look at Bitcoin like it’s digital gold. I don’t own gold, but I do own technologies,” Hougan stated.
ETH fits naturally into the portfolios of those who already allocate to innovative technologies. With tokenization and stablecoins gaining traction, he expects institutional flow into ETH to continue building momentum.
ETH Hits All-Time Highs As Institutions Target Long-Term Holdings
While institutions see Ethereum as the exposure to the technological backbone of a digital economy, Wall Street FOMO has hit historic levels, as the US institutional appetite for ETH is reaching unprecedented heights.
Crypto trader Bull Theory has highlighted that in August 2025 alone, Ethereum Spot ETFs purchased $3.87 billion worth of ETH, driven almost entirely by professional investors chasing long-term exposure. Leading the charge is $11 trillion asset manager BlackRock, which allocated $3.38 billion worth of ETH and $707 million in Bitcoin, highlighting a clear preference for ETH over BTC.
This wave of institutional buying pushed Ethereum to new all-time highs in August. Importantly, the majority of these purchases are intended for long-term holdings, reducing immediate sell pressure and supporting sustained price momentum. If ETH closes above $4,630, it will mark the highest monthly close since the 2021 bull run.
Furthermore, Ethereum’s transaction volumes surged past $320 billion on-chain, reflecting broad engagement across decentralized finance, stablecoins, and tokenized assets. Meanwhile, staking continues to attract Wall Street attention, with nearly 36 million ETH, which is 29% of the total circulating supply, now locked in staking contracts. With 3% staking rewards, Ethereum provides institutional investors with a steady dividend, making it more appealing for long-term portfolios.
