Investment advisers are becoming the largest buyers of Bitcoin and Ether exchange-traded funds (ETFs), as reported by Bloomberg Intelligence. Data indicates that in Q2, advisers invested over $1.3 billion in Ether ETFs, marking a 68% increase from the previous quarter. They hold $17 billion worth of Bitcoin ETFs, significantly outpacing hedge fund managers. However, this data is based on SEC filings, which represent only about 25% of the total Bitcoin ETF shares, with retail investors likely owning a large portion. Analysts believe that as advisers increasingly recommend Bitcoin and Ether ETFs, cryptocurrencies will be seen as viable long-term diversification assets alongside traditional investments. Regulatory clarity is expected to further boost this trend, with financial advisers potentially embracing crypto ETFs more as investor demand rises. However, future regulatory challenges could impact adviser participation in the crypto market, particularly if political shifts occur after elections.

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