According to new data from Bloomberg Intelligence, investment advisors are the largest traceable group purchasing Bitcoin and Ethereum ETFs, excluding retail.
Bloomberg ETF analyst James Seyffart stated in an X post that investment advisors dominate known holders of Ethereum ETFs, investing over $1.3 billion or 539,000 Ether (ETH) in the second quarter, a 68% increase from the previous quarter.
A similar trend has been observed in U.S. spot Bitcoin ETFs. Seyffart stated, 'Advisors are now the largest holders,' with over $17 billion in 161,000 Bitcoins (BTC).
These holdings are almost twice that of hedge fund managers. However, Seyffart points out that this data is based on submissions to the SEC, representing only part of all spot Bitcoin ETF holders.
Cryptocurrency ETF Data Analysis
Vincent Liu, chief investment officer of Kronos Research, stated that this data indicates a shift in the market from speculation to long-term investment.
Liu stated that as more advisors adopt Bitcoin and Ethereum ETFs, cryptocurrencies will be recommended as long-term diversification tools in traditional portfolios.
Advisors' Further Development Space in Cryptocurrency ETFs
Some speculate that with the introduction of regulations, the number of financial advisors in cryptocurrency ETFs could surge. In July, Fox News Business predicted that through financial advisors, the market could see trillions of dollars influx.
Pav Hundal, chief market analyst at Australian cryptocurrency broker Swyftx, believes that since June, the holdings of investment advisors in Bitcoin ETFs have increased by about 70%.
The Role of Regulation in the Growth of Cryptocurrency ETFs
Kadan Stadelmann, chief technology officer of Komodo Platform, noted, 'Financial advisors are bringing cryptocurrencies into the mainstream market through Wall Street.'
Stadelmann believes that, in the long run, regulation will play an important role in the growth of financial advisors in the crypto market.
