As the market for ether (ETH)-based ETFs gains traction in the United States, one question arises: Who is actually investing in these products?

A new report from CoinShares provides concrete data, mapping the institutional investors who are beginning to include ETH in their portfolios. The general conclusion: almost all of them were already holding Bitcoin (BTC).

“Professional adoption of Ethereum ETFs is not happening in isolation,” CoinShares states in its analysis published today, June 20. “Almost all of it is coming from the same firms that already have a strong presence in Bitcoin ETFs.”

To put it in numbers: 92% of the assets under management (AUM) in ETH ETFs reported by SEC Form 13F filers in Q1 2025 belong to institutions that also hold BTC ETFs.

In other words, this isn't a new group of investors exploring the cryptocurrency universe. Rather, it's the big players who were already exposed to Bitcoin and are now expanding their strategy to Ethereum. However, they are still few in number: only 24% of Bitcoin ETF applicants also own Ether ETFs.

“This means that, at least for now, ETH adoption is quite limited among professional managers and is highly concentrated among the largest, most crypto-friendly allocators,” CoinShares points out.

A select group with large amounts

While the number of institutions investing in ETH ETFs is small, their firepower is not. According to the report, these companies “form a very tight-knit group that holds a very significant portion of the ETH ownership base.” And they're not marginal players: they have significant allocations in both BTC and ETH.

CoinShares clarifies, however, that these allocations still represent a tiny fraction of their total. “These figures may seem high, but in context, they represent less than 1% of their portfolio composition; institutions are still entering the cryptocurrency sector.”

Still, the conviction among those who have already taken the plunge seems firm. “You'll see hundreds of millions of dollars tied up in ETH exposure at these companies,” the report notes.

Top: Assets under management (AuM) of Ethereum ETFs as of March 31, 2025; bottom: Institutional holdings based on 13F filings for the same ETFs. Source: CoinShares.

Grayscale for the people, BlackRock for corporations

One of the most striking findings of CoinShares' analysis is the huge discrepancy between the total assets under management (AUM) of each ETH ETF and their actual degree of institutional adoption, according to 13F filings. The clearest case is ETHE, Grayscale's legacy product. Although it maintains its lead in AUM, with around $2.3 billion at the time of reporting, only $149.7 million is held by reported institutions. In other words, the bulk of investment in this ETF comes from the retail segment or from players not required to file with the SEC.

In contrast, BlackRock's Ethereum ETF, ETHA, reported assets just shy of Grayscale's (around $2.2 billion), but far greater institutional adoption : $496.6 million reported in the hands of large investors. “That's 3.3 times more than Grayscale,” CoinShares notes.

This pattern reveals a clear preference for traditional institutional issuers when allocating ETH via ETFs. “Institutions prefer traditional issuers (BlackRock, Fidelity), but the main legacy product (ETHE) and the leveraged vehicle (ETHU) remain in demand,” the firm analyzes.

Leverage and Retail: The Curious Case of ETHU

Another notable piece of information in the report is the emergence of the ETHU ETF, a 2x leveraged Ethereum fund, as the fourth largest in terms of AUM. The surprise isn't just its size, but the type of product: in the Bitcoin universe, leveraged ETFs don't have such a prominent presence. CoinShares interprets this phenomenon as a sign of high retail demand. “It could be a cheaper alternative to options or margin,” it suggests. It adds that the lack of an equivalent to Strategy a company that acts as a Bitcoin proxy for many investors could be fueling interest in high-beta ETH vehicles.

It is worth clarifying that, little by little companies are beginning to emerge, with SharpLink at the forefront, that make the accumulation of ETH an essential part of their business.

Organizations with the most ether (ETH) in their treasuries. Source: https://www.strategicethreserve.xyz/

ETH as a “second layer” of exposure

Despite ETH and BTC being very different assets, with different fundamentals and use cases, the data reveals that institutions aren't treating them as independent bets in practice. CoinShares sums it up this way: “ETH is establishing itself as a natural extension of existing cryptocurrency strategies, not a standalone bet.”

The report even projects a possible cross-selling strategy by issuers: “We wouldn't be surprised if asset managers began to view this data as an opportunity to cross-sell ETH products to BTC clients.”

For now, that hasn't happened en masse. Most Bitcoin ETF applicants have yet to add ETH to their portfolios. “Observing which of these companies begin allocating in the coming quarters will be key to understanding whether Ethereum is considered mature enough for institutional portfolios,” the firm adds.

Ethereum is in the early stages of discovery

In closing, CoinShares reminds us that we are still in the early stages of developing these products: “It doesn't feel like all that long ago we discussed whether the SEC would consider ETH an unregistered security. Now, we are almost a year away from the first anniversary of ether ETFs in the United States.”

For CoinShares, this type of data can be used to monitor how institutional sentiment on Ethereum evolves. “We believe many investment committees are probably still wondering how much further along the risk curve ETH is compared to BTC,” they opine.

We'll have to wait until the next round of 13F filings expected for mid-July to confirm whether current allocations are sustained, increased, or diluted. For now, early signs for the second quarter are promising: ETH ETFs have seen global net inflows of $1.8 billion, bringing the year-to-date total to $2.2 billion. “We expect these allocations to be long-lasting,” CoinShares concludes. The market will have the final say.