New research from CoinShares breaks down why Bitcoin and Ethereum function as complementary rather than competing assets, a distinction that could support the investment case for dual-exposure products like the CoinShares Bitcoin and Ether ETF (BTF).
BTF tracks the price performance of both Bitcoin and Ethereum without directly holding the underlying cryptocurrencies, according to ETF Database. BTF holds $31 million in assets and posted three-year returns of 50.8%. The fund has attracted $2.02 million in flows year-to-date.
According to the CoinShares report, Bitcoin operates as a monetary settlement layer while Ethereum serves as a utility engine for applications, meaning their value drivers differ and they often react differently to market events.
Bitcoin’s hard cap of 21 million coins creates scarcity through programmed halvings every four years, according to the report. The network has already minted 95% of all BTC that will ever exist.
Ethereum takes a different path, the report states. While it has no supply cap, the network permanently destroys ETH with every transaction through a “burn” mechanism introduced in 2021.
The research highlights that Bitcoin uses proof of work, requiring miners to solve complex puzzles to process transactions. Ethereum switched to proof of stake in 2022, which cut the network’s energy usage by 99.95%, according to the report.
The energy efficiency difference matters for institutional investors who increasingly weigh environmental factors in allocation decisions, the report notes. Bitcoin’s higher energy consumption has drawn regulatory scrutiny, while Ethereum’s reduced footprint may appeal to funds with sustainability mandates.
Institutions Embrace Bitcoin and Ethereum
Institutional investors have embraced Bitcoin more readily due to its longevity and liquidity, the report notes. Spot bitcoin ETFs launched in early 2024 and now hold $176 billion in assets, according to CoinShares data from October 2025.
Ethereum is catching up, the research states. Spot ether ETFs approved in summer 2024 hold $25 billion in assets. The report points to Ethereum’s dominance in tokenized real-world assets and stablecoins as major institutional opportunities.
The report emphasizes that both networks offer exposure to distinct value sources within crypto: BTC as a form of digital value and ETH as programmable infrastructure for digital finance. Just as equity investors diversify across sectors, some allocate to both assets to gain exposure to different parts of the digital ecosystem, according to CoinShares.
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