MorenoDV_2026-10-01

Ethereum Leads the Recovery in Crypto Fund Exposure:

Fund demand is rebuilding across Bitcoin and Ethereum, but the recovery is considerably stronger in ETH relative to its July base. Bitcoin fund holdings have risen from roughly 1.235M BTC to 1.31–1.32M BTC, adding approximately 75,000–85,000 BTC (+6–7%). Ethereum holdings have climbed from around 5.45M ETH to 6.70–6.77M ETH, an increase of roughly 1.25–1.32M ETH (+23–24%). These balances are measured in coins, not dollars: their recovery cannot be explained by higher asset prices alone. More underlying supply is now held through the tracked ETFs, trusts and other investment vehicles, consistent with renewed demand for indirect crypto exposure from institutional and retail investors. The distinction is how far each recovery has progressed. ETH holdings are approaching their October 2025 peak, while BTC remains below both its October peak and its May rebound high. Ethereum has therefore rebuilt a larger proportion of the exposure lost during the drawdown. This does not establish that capital is rotating out of BTC into ETH; both balances are rising. Price has recovered alongside holdings, yet remains well below its earlier highs. That points to improving fund participation within an incomplete market recovery. Growing balances can help absorb available supply, but sustainable upside requires that absorption to persist against selling elsewhere. What to Watch: Continued holdings growth during price pullbacks, supported by positive fund flows and spot demand. A reclaim of previous holdings highs would strengthen the recovery thesis. Risk: Renewed redemptions would weaken this source of support. Holdings alone cannot establish investors' motives or confirm a durable bull market.