Investment Advisers Quietly Becoming the Biggest Buyers of Bitcoin and Ether ETFs
- Advisers now dominate spot Bitcoin and Ether ETFs, with $17B in BTC and $1.3B in ETH exposure.
- This marks a shift from speculation to long-term allocation, embedding crypto into traditional portfolios.
- Future adoption hinges on regulatory clarity and politics, with trillions in potential inflows still on the table.
It turns out the biggest wallets behind Bitcoin and Ether ETFs aren’t hedge funds or retail traders—it’s financial advisers. According to fresh numbers pulled by Bloomberg Intelligence, advisers have quietly become the largest trackable group scooping up spot crypto ETFs, piling billions into BTC and ETH exposure.
Bloomberg ETF analyst James Seyffart noted on X that advisers now dominate known holders of Ether ETFs, grabbing over $1.3 billion (around 539,000 ETH) in Q2. That’s a 68% jump from the prior quarter. The same pattern shows up in Bitcoin ETFs, where advisers are holding more than $17 billion worth of BTC—about 161,000 coins—nearly double what hedge funds have on record.
But Seyffart added a caveat: the data only reflects SEC 13F filings, which cover about 25% of ETF shares. The rest—roughly three-quarters—are in the hands of non-filers, mostly retail investors.
From Speculation to Long-Term Allocation
Market watchers say this is a turning point. Vincent Liu, CIO at Kronos Research, explained that advisers piling in means the narrative is shifting from fast-money speculation to portfolio-driven allocation.
“As top holders, they bring stability and deeper liquidity. It shows crypto is slotting into the global market machine,” Liu said. He argued that Bitcoin and Ethereum ETFs are now becoming legit diversification tools, right alongside bonds, equities, and real estate.
And the appetite might just be warming up. With yield-bearing assets like staked ETH eventually getting ETF treatment, advisers could start using crypto not just as a hedge, but as a revenue driver for portfolios.
The Growth Curve Could Steepen
Analysts think this is only the beginning. In July, Fox Business suggested trillions could flow in through advisers as regulation clears up.
Pav Hundal, lead analyst at Swyftx, told Cointelegraph that adviser holdings in Bitcoin ETFs alone are up 70% since June, boosted by both softer regulatory winds in the U.S. and a growing taste for risk assets.
“We’re still in the early innings,” he said. “There are always the early adopters and then the wave that follows out of fear of missing out. That’s true for institutions just like it is for retail.” Hundal added that with ETH pressing new highs and U.S. policymakers hinting at easier monetary conditions, the setup is primed for advisers to push even deeper into crypto ETFs.
Regulation and Politics Still Loom Large
Of course, regulation hangs over everything. Kadan Stadelmann, CTO at Komodo Platform, said Main Street investors are accessing crypto through their advisers, who in turn take cues from Wall Street’s biggest names—BlackRock, Fidelity, and the like.
Stadelmann pointed out that the SEC’s Project Crypto and Congress’s Genius Act have brought clarity, giving advisers confidence to step in. But the regulatory balance isn’t set in stone.
“If the next government swings anti-crypto, we could see crackdowns that chill adviser participation,” he warned. “The risk is advisers worrying about their licenses if products suddenly get flagged.” Still, he added, Democrats may keep the current status quo intact, since market demand is so strong.
The post Investment Advisers Quietly Becoming the Biggest Buyers of Bitcoin and Ether ETFs first appeared on BlockNews.
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Investment Advisers Quietly Becoming the Biggest Buyers of Bitcoin and Ether ETFs
- Advisers now dominate spot Bitcoin and Ether ETFs, with $17B in BTC and $1.3B in ETH exposure.
- This marks a shift from speculation to long-term allocation, embedding crypto into traditional portfolios.
- Future adoption hinges on regulatory clarity and politics, with trillions in potential inflows still on the table.
It turns out the biggest wallets behind Bitcoin and Ether ETFs aren’t hedge funds or retail traders—it’s financial advisers. According to fresh numbers pulled by Bloomberg Intelligence, advisers have quietly become the largest trackable group scooping up spot crypto ETFs, piling billions into BTC and ETH exposure.
Bloomberg ETF analyst James Seyffart noted on X that advisers now dominate known holders of Ether ETFs, grabbing over $1.3 billion (around 539,000 ETH) in Q2. That’s a 68% jump from the prior quarter. The same pattern shows up in Bitcoin ETFs, where advisers are holding more than $17 billion worth of BTC—about 161,000 coins—nearly double what hedge funds have on record.
But Seyffart added a caveat: the data only reflects SEC 13F filings, which cover about 25% of ETF shares. The rest—roughly three-quarters—are in the hands of non-filers, mostly retail investors.
From Speculation to Long-Term Allocation
Market watchers say this is a turning point. Vincent Liu, CIO at Kronos Research, explained that advisers piling in means the narrative is shifting from fast-money speculation to portfolio-driven allocation.
“As top holders, they bring stability and deeper liquidity. It shows crypto is slotting into the global market machine,” Liu said. He argued that Bitcoin and Ethereum ETFs are now becoming legit diversification tools, right alongside bonds, equities, and real estate.
And the appetite might just be warming up. With yield-bearing assets like staked ETH eventually getting ETF treatment, advisers could start using crypto not just as a hedge, but as a revenue driver for portfolios.
The Growth Curve Could Steepen
Analysts think this is only the beginning. In July, Fox Business suggested trillions could flow in through advisers as regulation clears up.
Pav Hundal, lead analyst at Swyftx, told Cointelegraph that adviser holdings in Bitcoin ETFs alone are up 70% since June, boosted by both softer regulatory winds in the U.S. and a growing taste for risk assets.
“We’re still in the early innings,” he said. “There are always the early adopters and then the wave that follows out of fear of missing out. That’s true for institutions just like it is for retail.” Hundal added that with ETH pressing new highs and U.S. policymakers hinting at easier monetary conditions, the setup is primed for advisers to push even deeper into crypto ETFs.
Regulation and Politics Still Loom Large
Of course, regulation hangs over everything. Kadan Stadelmann, CTO at Komodo Platform, said Main Street investors are accessing crypto through their advisers, who in turn take cues from Wall Street’s biggest names—BlackRock, Fidelity, and the like.
Stadelmann pointed out that the SEC’s Project Crypto and Congress’s Genius Act have brought clarity, giving advisers confidence to step in. But the regulatory balance isn’t set in stone.
“If the next government swings anti-crypto, we could see crackdowns that chill adviser participation,” he warned. “The risk is advisers worrying about their licenses if products suddenly get flagged.” Still, he added, Democrats may keep the current status quo intact, since market demand is so strong.
The post Investment Advisers Quietly Becoming the Biggest Buyers of Bitcoin and Ether ETFs first appeared on BlockNews.
Read More