Ethereum Gains Ground on Bitcoin as a Preferred Store of Value for Institutions
Ethereum appears to be gaining ground against Bitcoin in the battle for store of value supremacy, with VanEck analysts pointing to several key developments that could shift the competitive landscape. The emergence of digital asset treasuries among major corporations has created new dynamics, as companies increasingly evaluate both cryptocurrencies for their treasury management strategies.
Corporate Treasury Adoption Drives Competition
While Bitcoin initially dominated corporate treasury allocations due to its capped supply and established reputation, Ethereum has begun attracting institutional attention through different mechanisms. Recent regulatory developments in the United States have emphasized the importance of stablecoins and tokenization capabilities, both of which represent core strengths within Ethereum’s ecosystem.
Major financial institutions and exchanges have started launching tokenized equity products on Ethereum’s blockchain, demonstrating the network’s expanding utility beyond its original smart contract applications. The flexibility inherent in Ethereum’s design allows organizations to implement more sophisticated financial strategies compared to Bitcoin’s more limited functionality.
Ethereum’s staking mechanism provides treasury managers with opportunities to generate additional returns through network participation. This yield-generating capability offers a distinct advantage over Bitcoin, which lacks comparable native earning mechanisms for holders.
🚨 BlackRock, Fidelity, Franklin Templeton, UBS, Deutsche Bank…
They’re ALL building on Ethereum 🧱
Why?
Because Ethereum is the most secure & decentralized settlement layer in the world.
$140B in stablecoins, $10B in tokenized assets—already on ETH.
Institutions have… pic.twitter.com/ECYS211Z54
— Leo Lanza | ETHisDigitalOil.eth (@l3olanza) June 4, 2025
Inflation Dynamics Reshape Value Propositions
The transition from proof-of-work to proof-of-stake has fundamentally altered Ethereum’s supply dynamics. VanEck’s analysis reveals that ETH supply actually decreased from approximately 120.6 million tokens in October 2022 to 120.1 million in April 2024, creating a negative inflation rate of -0.25%.
During this same timeframe, Bitcoin’s supply expanded by 1.1%, highlighting a stark contrast in monetary policies. Bitcoin’s programmed halvings create predictable reductions in new issuance, but the network generated over $14 billion in inflationary rewards for miners last year alone.
Bitcoin faces a long-term challenge as its security model currently depends heavily on inflationary block rewards to compensate miners. As these rewards diminish through successive halvings, the network will need to rely increasingly on transaction fees or substantial price appreciation to maintain adequate security incentives.
Ethereum’s proof-of-stake consensus mechanism shifts governance influence toward token holders rather than miners, potentially creating better alignment between network decisions and stakeholder interests. This governance structure allows for more adaptive economic policies compared to Bitcoin’s miner-centric decision-making process.
Market Sentiment Analysis
The analysis from VanEck could strengthen institutional confidence in Ethereum’s long-term value proposition, particularly among treasury managers seeking yield opportunities. However, Bitcoin’s established position and regulatory clarity may continue supporting its dominance in the near term.