red hat virtualization manager

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Can RHVM be installed to a VM and sit on one of the RHEV hypervisors?

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Yes, this is possible if you set up a self-hosted engine: Self-Hosted Engine Guide

The installation process is quite different from a standalone RHVM installation, so I recommend careful planning.

This is not good design, just look what procedures you'll face if you try to upgrade to next version after some time. https://access.redhat.com/labs/rhvupgradehelper/

I am using the Self Hosted Engine for RHVM and it works perfectly . If any of the hypervisor is down it automatically switches to next availble hosted engine Hypervisor .

Nice, I didn't know that. Thanks