Investment advisers have emerged as the largest trackable institutional cohort buying spot Bitcoin and Ether exchange-traded funds, representing roughly $18.3 billion of combined exposure, according to data compiled by Bloomberg Intelligence.

Bloomberg ETF analysts show advisers boosted their Ether ETF holdings by more than $1.3 billion in the second quarter — roughly 539,000 ETH, an increase of about 68% from the prior quarter. In spot Bitcoin ETFs advisers hold roughly $17 billion of exposure, equivalent to about 161,000 BTC. On the filings that are publicly reportable, adviser exposure is nearly double that of hedge funds, though those filings capture only a portion of total ETF ownership.

Industry participants say the shift reflects a move away from short-term speculative flows toward portfolio-driven allocations. Advisers adopting crypto ETFs provide deeper liquidity and make cryptocurrencies more likely to be recommended as a long-term diversification tool alongside equities and bonds.

Market analysts note there remains significant room for adviser allocations to grow. Softer regulatory signals in the U.S. and strong demand for risk-on assets have coincided with a notable pickup in adviser ETF activity since June. Observers expect a mix of early adopters and later entrants — the latter often driven by fear of missing out as prices and mainstream acceptance rise.

Regulation and political dynamics will shape the pace of institutional adoption. Some industry voices point to recent regulatory developments as giving advisers greater confidence to offer crypto products, while also warning that a less friendly policy environment could curb adviser participation and slow inflows.

Overall, advisers’ increasing Bitcoin and Ether ETF holdings suggest crypto is moving further into mainstream portfolio construction. The trend strengthens the market’s institutional base, but sustained growth will depend on continued regulatory clarity and wider product development, such as additional ETFs and potential yield-bearing crypto instruments.