Ethereum ETFs and Corporate Reserves Now Hold Nearly 8% of Total Supply Amid Rising Institutional Interest0
Over the past few months, the amount of Ethereum (ETH) held by exchange-traded funds (ETFs) and corporate treasuries has nearly tripled, reflecting a growing institutional appetite for the second-largest cryptocurrency. Data from Strategic ETH Reserve.xyz reveals that ETFs and company reserves now control close to 8% of the total Ethereum supply, up from just 3% at the start of April 2025.
This surge coincides with Ethereum’s price rising from around $1,800 in early April to over $4,300 by mid-August, driven largely by increased institutional purchases and the growing recognition of Ethereum’s role as the leading smart contract platform.
Institutional Ethereum Holdings on the Rise
As of August 2025, Ethereum ETFs alone hold more than 6.15 million ETH, which accounts for over 5% of Ethereum’s circulating supply. Corporate reserves have also increased significantly, with several firms publicly disclosing large ETH holdings. For instance, Bitmine Immersion Tech owns approximately 1.2 million ETH, The Ether Machine holds nearly 600,000 ETH, and SharpLink Gaming has around 345,000 ETH in its treasury.
Among the largest Ethereum ETFs, BlackRock’s iShares Ethereum Trust leads with $13.1 billion in assets under management (AUM), followed by Fidelity’s Ethereum Fund, which manages $3 billion. Combined, all Ethereum funds now have an AUM of about $31.9 billion, representing roughly 18% of Bitcoin fund values.
The rapid growth of Ethereum funds is evident in recent months. From June 30 to August 2025, the total value of these funds more than doubled, increasing from $14.6 billion to nearly $32 billion.
Reasons Behind Ethereum’s Institutional Surge
Experts suggest several reasons for this notable growth in institutional Ethereum holdings. According to Jad Comair, CEO of Melanion Capital, many investors who missed the early institutional Bitcoin accumulation phase are now turning to Ethereum and other altcoins. They see Ethereum as an opportunity to capture similar growth given its strong fundamentals and expanding ecosystem.
Ruslan Lienkha, Chief of Markets at YouHodler, points out that Ethereum had lagged in performance relative to Bitcoin until recently, making it attractive for investors seeking potentially higher short-term returns. Although Ethereum’s price remains below its all-time high of $4,878 from 2021, its recent price recovery and growing use cases have helped boost institutional interest.
Ethereum’s position as the largest layer-one blockchain platform also plays a critical role in attracting institutional investors. Lienkha highlights Ethereum’s diversified ecosystem, which goes beyond serving as a store of value. This broad utility, including decentralized finance (DeFi), non-fungible tokens (NFTs), and tokenized assets, increases Ethereum’s appeal for institutional buyers looking for both growth and technological exposure.
Corporate Treasuries Embracing Ethereum
The trend of corporate treasury diversification, historically led by Bitcoin, is now extending to Ethereum. Companies like SharpLink Gaming have publicly announced plans to increase their ETH holdings further. SharpLink, for example, is currently raising $400 million to boost its Ethereum treasury, aiming to exceed $3 billion in total ETH assets. This signals growing corporate confidence in Ethereum’s long-term value and potential.
Despite this growing interest, some market watchers remain cautious about the sustainability of these trends. Jad Comair compares the recent growth in Ethereum ETFs and reserves to the 2017-2018 ICO boom, suggesting that while Bitcoin treasuries provide tangible financial benefits, altcoin treasury movements might not have the same long-term impact. He anticipates that other altcoins, such as Solana, could be next to be branded as “treasury coins,” but also warns that many altcoin treasury moves could be temporary phenomena.
Outlook for Ethereum ETFs and Institutional Adoption
While some experts express skepticism, many see the current environment as favorable for continued institutional investment in Ethereum. Lienkha emphasizes that the broader market conditions remain constructive, with major stock indices trading near or at all-time highs. This “risk-on” atmosphere encourages further capital inflows into Ethereum, particularly as institutions look to diversify beyond Bitcoin and tap into Ethereum’s extensive blockchain ecosystem.
The growing prominence of Ethereum ETFs also reflects increased investor demand for regulated and transparent ways to gain exposure to crypto assets. As Ethereum’s network continues to evolve, with upgrades aimed at improving scalability and sustainability, institutional interest is expected to stay strong.
Conclusion
Ethereum’s rise in institutional holdings marks a significant shift in the cryptocurrency landscape. With nearly 8% of the total ETH supply now controlled by ETFs and corporate reserves, the asset is steadily gaining traction among large-scale investors. Whether this trend will continue or face challenges similar to past crypto cycles remains to be seen. However, Ethereum’s unique position as a leading smart contract platform and its expanding institutional adoption set a strong foundation for its role in the evolving digital asset market.
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