Institutional investors have been showing a significant increase in their exposure to Ethereum (ETH) through exchange-traded funds (ETFs) in the second quarter. According to data shared by Bloomberg ETF analyst James Seyffart, investment advisor firms have taken the lead in this trend, controlling $1.35 billion in Ethereum ETF exposure, equivalent to 539,757 ETH. This sector saw a net addition of 219,668 ETH during the past quarter, showcasing a growing interest in Ethereum among traditional finance sectors.
Hedge fund managers also saw a substantial increase in Ethereum exposure, with holdings totaling $687 million, equivalent to 274,757 ETH. This represents a 104% increase from the first quarter, indicating a growing appetite for Ethereum within the hedge fund industry.
Top-tier Wall Street firms such as Goldman Sachs, Jane Street Group, and Millennium Management are leading the way in institutional Ethereum holdings. Goldman Sachs holds the largest individual position with $721.8 million in Ethereum ETF positions, equivalent to 288,294 ETH exposure. This concentration among major financial institutions signifies a broader acceptance of Ethereum as a legitimate asset class within traditional investment portfolios.
While brokerage firms added 13,525 ETH (15.4%) positions during the quarter, private equity and holding companies contributed $62.2 million and $60.6 million, respectively. However, pension funds and banks reduced their exposure to Ethereum during this period.
Overall, total institutional exposure to Ethereum across all categories tracked by Bloomberg Intelligence reached $2.44 billion by the end of the second quarter, with combined holdings amounting to 975,650 ETH. The third quarter is expected to show further increases in institutional participation based on the current trends.
Recent data from Farside Investors reveals a significant surge in Ethereum ETF inflows, reaching $13.3 billion by August 26, up from $4.2 billion on June 30. This new all-time high in cumulative inflows indicates a growing interest in Ethereum as a corporate treasury asset. In fact, 17 publicly listed companies now hold 3.4 million ETH, valued at nearly $15.7 billion.
The latest acquisition by SharpLink on August 26 added 56,533 ETH to its treasury, bringing its total holdings to 797,704 ETH. However, BitMine remains the leader in Ethereum hoarding, with 1,713,899 ETH worth almost $8 billion.
Overall, the increasing institutional adoption of Ethereum as an investment asset and corporate treasury reserve signals a positive outlook for the future of the cryptocurrency. With growing interest from various sectors of the financial industry, Ethereum continues to solidify its position as a valuable and sought-after digital asset.