A significant proportion, around 8%, of Ethereum's total supply is now held in ETFs or company reserves.

In the ever-evolving world of cryptocurrency, Ethereum continues to make waves, despite a slight lag in performance that keeps it below its 2021 all-time high (ATH) of $4,878. This resilience, however, is not going unnoticed as institutional investors, who missed the Bitcoin treasury moment, are now turning their attention to Ethereum and other altcoins, hoping for a similar impact.

According to Melanion Capital CEO, Jad Comair, the rapid growth of Ethereum funds can be largely attributed to Ethereum's relative immaturity compared to Bitcoin. He contends that while Ethereum may not command the same level of corporate interest as Bitcoin, it offers a robust ecosystem with diversified utility beyond being a store of value. This broader utility within the blockchain ecosystem is a key factor in Ethereum's continued growth.

The evidence of this growth is evident in the burgeoning Ethereum ETF market. Major players like iShares Ethereum Trust, Grayscale Ethereum Trust ETF, Fidelity Ethereum Fund ETF, Grayscale Ethereum Mini Trust ETF, and Bitwise Ethereum ETF are leading the charge, collectively holding over 6.15 million ETH, which represents over 5% of Ethereum's total circulating supply.

Notable companies like BitMine, SharpLink, and The Ether Machine are also joining the ranks, accumulating Ethereum as a treasury asset and adding over $10 billion in ETH reserves over recent months. Institutional heavyweights such as BlackRock and Fidelity are significant players in Ethereum ETF holdings, with 13F filers doubling their ETH ETF exposure to $2.5 billion in Q2 2025.

The total value of all Ethereum funds currently stands at $31.9 billion, a significant increase from the $14.6 billion reported as recently as June 30. This growth is also reflected in the increasing Ethereum ETFs and strategic reserves, which now account for 7.98% of Ethereum's total supply.

Some analysts, including Jad Comair, liken the recent growth in Ethereum ETFs and strategic ETH reserves to the 2017-18 Initial Coin Offering (ICO) boom. However, Lienkha, another analyst, believes that this risk-on environment will stimulate further capital inflows into ETH, particularly as institutions continue to diversify their digital asset exposure beyond Bitcoin.

Despite the optimism, it's important to note that the article does not provide specific predictions about the future value of Ethereum or the total AUM of Ethereum funds. Lienkha, however, remains bullish, contending that the current market conditions remain constructive, with major indices trading near or at all-time highs, and that the trend of growing Ethereum ETFs and treasuries will continue.

On the other hand, Comair argues that while Bitcoin treasuries are fundamentally creating value for corporate finances, most altcoin treasury moves are likely to be a passing fad. He suggests that coins like Solana might be branded as "treasury coins" next, but the longevity of this trend remains to be seen.

As Ethereum continues to attract institutional interest and grow its ETF market, it remains to be seen how this will impact its performance and its place in the cryptocurrency landscape. One thing is certain, though: Ethereum's robust ecosystem, offering diversified utility beyond being a store of value, enhances its investment appeal for institutions and public companies.