Ethereum and Bitcoin ETFs See Significant Growth in Advisor Holdings

According to BlockBeats, data shared by Bloomberg analyst James Seyffart reveals that investment advisors have become dominant holders of Ethereum ETFs, with investments exceeding $1.3 billion in the second quarter, equivalent to 539,000 Ethereum. This marks a 68% increase from the previous quarter. A similar trend is observed in U.S. spot Bitcoin ETFs, where advisors now hold 161,000 Bitcoin, valued at over $17 billion. Vincent Liu, Chief Investment Officer at Kronos Research, commented that these figures indicate a shift from speculative to long-term, portfolio-driven allocations. As the largest holders, their strategic positioning provides deeper liquidity and a lasting foundation for cryptocurrencies in global markets. Additionally, with more advisors adopting Bitcoin and Ethereum ETFs, cryptocurrencies are increasingly being recommended and recognized as long-term diversification tools within traditional investment portfolios, complementing stocks, bonds, and other mainstream assets. The report highlights that the number of financial advisors involved in cryptocurrency ETFs may surge as regulatory frameworks come into effect. In July, Fox Business News predicted that trillions of dollars could flow into the market through financial advisors.