Ethereum ETFs expected to knock off BTC ETFs by September

If Ethereum ETFs’ positive inflows continue, they could surpass Bitcoin ETFs in terms of circulating supply held, according to analyst and Dragonfly data scientist Hildobby. The Indexed Podcast host sees Ether’s institutional accumulation of the token’s supply overtaking Bitcoin’s ETF share as early as September.

In an August 18 X post, Hildobby shared two Dune Analytics dashboard snapshots that showed Bitcoin ETFs currently hold 6.38% of the total Bitcoin supply. In comparison, Ethereum ETFs account for 5.08% of Ethereum’s supply. 

at current pace, % of ETH in ETFs will exceed BTC's in september

srcs: https://t.co/jW6Of0S51K, https://t.co/0uASMTncJf pic.twitter.com/LzVIceXlha

— hildobby (@hildobby) August 18, 2025

The data scientist admitted that BTC may be ahead in percentage terms now, but Ethereum ETF holdings against total supply trajectory have outpaced its rival.

In 2025, Ethereum ETFs climbed from holding just over 3.5 million ETH in February to 6.52 million ETH as of August 18. This represents more than 5% of Ethereum’s total circulating supply, a noticeable uptick in only six months. By contrast, Bitcoin ETF holdings have grown at a slower rate.

Projections suggest that if Ethereum continues at this pace, its ETF holdings will surpass Bitcoin ETFs as a proportion of supply at the start of Q4 2025.

Billions flowing into Ethereum funds

According to SoSoValue data, the total value of Ethereum ETFs stood at $27.74 billion as of Tuesday, representing 5.34% of Ethereum’s market capitalization, which currently exceeds $517 billion.

The inflows mark a dramatic increase from June 30, when ETH ETF assets under management totaled $14.6 billion. In slightly more than 30 days leading up to this week, the total holdings jumped by almost 64% to $24 billion. 

The largest players in ETF accumulations are BlackRock’s iShares Ethereum Trust ETF, holding $12.1 billion in net assets, and Fidelity’s Ethereum Fund, with $4.8 billion. Together, they account for about 60% share of the broader Ethereum spot ETF market.

Institutional investors have more interest in Ethereum

Along with the influx of ETFs, data from the analytics company CryptoQuant shows that big investors now own 19.2 million ETH, which is the highest concentration ever seen.

Since 2023, these institutions and big holders have steadily increased their exposure. This is in line with Ethereum’s recovery from long market downturns.

The accumulation trend has coincided with Ethereum’s price rebound, which recently pushed above $4,500. This recovery follows weeks of price corrections between $3,000 to $4,000, which saw many smaller traders exit the market.

Retail investors, once a dominant force in Ethereum ownership, have seen their share sharply reduced. Their collective holdings now stand at 8.6 million ETH, down from more than 20 million in 2021. 

Moreover, data from StrategicETHReserve.xyz shows Ethereum ETF accumulation was near 3.9 million ETH in February, and has gradually increased through the spring to surpass 6.5 million ETH.

US-listed spot Ethereum ETFs recorded a rare setback on August 15. The funds posted net outflows of $59.34 million, ending an eight-day streak of continuous inflows that had added $3.7 billion in total.

The reversal followed Ethereum’s retreat from near all-time highs, with the asset pulling back from $4,740 to current levels around $4,450. Even so, last week’s inflows amounted to 649,000 ETH, the largest weekly total ever recorded.

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