Investment advisers have emerged as the largest identifiable group outside of retail investors purchasing Bitcoin and Ether exchange-traded funds, according to fresh data from Bloomberg Intelligence.
Bloomberg ETF analyst James Seyffart noted in an X post on Wednesday that advisers are “dominating the known holders” of Ether ETFs, with allocations exceeding $1.3 billion — equivalent to 539,000 Ether — in Q2, marking a 68% jump from the prior quarter.
A similar trend is playing out with U.S. spot Bitcoin ETFs. Seyffart said Monday that “advisers are by far the biggest holders now,” with more than $17 billion in exposure across 161,000 Bitcoin.
In both Bitcoin and Ether ETFs, investment advisers’ allocations were nearly double those of hedge fund managers.
Still, Seyffart emphasized that the figures are drawn from SEC filings, which capture only a portion of the market.
“This is mostly 13F data, covering about 25% of Bitcoin ETF shares,” he explained. “The remaining 75% are held by non-filers, which are largely retail investors.”
Analysts Say Crypto ETF Data Reveals Key Trends
Vincent Liu, chief investment officer at Kronos Research, said the data points to a transition from short-term speculative trading to more stable, portfolio-focused allocations.
“As the leading holders, their strategic positions add meaningful liquidity and create a durable base for crypto’s integration into global markets,” he told Cointelegraph.
Liu added that as more advisers embrace Bitcoin and Ether ETFs, digital assets will increasingly be recommended as a long-term diversification tool alongside equities, bonds, and other traditional investments.
“As more altcoins join the ETF space and yield-bearing assets like staked Ether gain approval, advisers can use crypto not just to diversify portfolios but also to generate returns, driving broader and longer-term adoption.”
Advisers Still Have Room to Expand Into Crypto ETFs
Some analysts believe the presence of financial advisers in crypto ETFs could surge once regulatory frameworks take hold. In July, Fox Business projected that trillions of dollars might enter the market through adviser-driven allocations.
Pav Hundal, lead market analyst at Australian crypto broker Swyftx, told Cointelegraph that investment adviser positions in Bitcoin ETFs have climbed nearly 70% since June, driven by easing U.S. regulatory conditions and surging demand for risk-on assets.
“We’re probably still in the early stages of this growth cycle. As with any investment gaining traction, you tend to see two groups emerge: the early adopters and those who join later out of fear of missing out,” he said.
“That dynamic plays out across both institutions and retail investors. With Ethereum pressing into new all-time highs, and US policymakers hinting at a softer monetary stance as the labor market shows cracks, the setup is there for advisers to lean in further.”
Regulation Set to Shape Crypto ETF Growth
Kadan Stadelmann, chief technology officer at the blockchain-based Komodo Platform, told Cointelegraph that the data shows “Main Street, via their financial advisers, is turning to Wall Street for access to crypto markets.”
He noted that Ether ETFs are following the path of Bitcoin ETFs, albeit on a smaller scale, marking a transition from early adoption to institutional participation. “And it’s not just smaller Wall Street firms — it’s the biggest players, including BlackRock and Fidelity,” he added.
In the long term, Stadelmann believes “regulatory realities” will be a key factor shaping financial advisers’ participation in the crypto market.
He pointed to recent developments, including the SEC’s launch of Project Crypto in July to support blockchain innovation and the U.S. House’s passage of the Genius Act, which delivered long-sought regulatory clarity for the industry.
“In lower Manhattan, crypto is increasingly viewed as an equity rather than a revolution. The involvement of major players has encouraged financial advisers to follow suit, backed by the confidence that clearer regulations now provide,” Stadelmann said.
Still, he cautioned that a shift in political leadership could change the outlook. “A less crypto-friendly administration might push for crackdowns, potentially freezing the institutional crypto market and instilling fear among advisers that offering such products could put their licenses at risk,” he warned.
“That is yet to be seen, and Democrats could leave the new status quo due to market demands.”
