Investment advisors drive 388,301 ETH surge in institutional ETF adoption during Q2

Institutional investors increased their Ethereum (ETH) exposure via exchange-traded funds (ETFs) by 388,301 ETH in the second quarter, with investment advisors commanding the largest share of adoption across traditional finance sectors.

According to data shared by Bloomberg ETF analyst James Seyffart, investment advisor firms control $1.35 billion in Ethereum ETF exposure, representing 539,757 ETH and capturing 219,668 ETH in net additions during the past quarter.

Investment advisors dwarf other institutional segments, with hedge fund managers ranking second at $687 million in exposure. Their holdings are equivalent to 274,757 ETH, representing a 104% increase from the first quarter.

Growing institutional adoption

Goldman Sachs leads individual institutional holders with $721.8 million in Ethereum ETF positions, equivalent to 288,294 ETH exposure.

Jane Street Group follows at $190.4 million, while Millennium Management commands $186.9 million in ETF shares.

The concentration among top-tier Wall Street firms demonstrates institutional acceptance of Ethereum as a legitimate asset class within traditional portfolios.

Brokerage firms generated the third-largest exposure category at $253 million, adding 13,525 ETH (15.4%) positions during the quarter.

Private equity and holding companies contributed $62.2 million and $60.6 million, respectively, while pension funds and banks reduced their hands on Ethereum exposure.

Total institutional exposure across all categories tracked by Bloomberg Intelligence reached $2.44 billion by the end of the second quarter, representing 975,650 ETH in combined holdings.

The third quarter could also potentially show substantial increases in institutional participation based on the numbers so far.

Data from Farside Investors shows Ethereum ETF inflows surged from $4.2 billion on June 30 to $13.3 billion by Aug. 26, marking an over threefold increase and a new all-time high in cumulative inflows. August alone generated approximately $3.7 billion in additional flows.

The acceleration follows the continued adoption of Ethereum as a corporate treasury asset. Data compiled by the Strategic ETH Reserve shows that 17 publicly listed companies hold 3.4 million ETH, worth nearly $15.7 billion.

SharpLink registered the latest acquisition on Aug. 26, adding 56,533 ETH to its treasury, bringing its total to 797,704 ETH. However, it remains significantly lower than BitMine’s 1,713,899 ETH hoard, worth nearly $8 billion.

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