Digital asset trust companies have surpassed spot ETFs as the largest holders of Ethereum, according to on-chain data. BitMine, one of the biggest players in the space, now accounts for nearly 5% of the total ETH supply. The shift marks a notable change in how institutional money flows into the second-largest cryptocurrency.
How DAT companies took the lead
Spot ETFs were long seen as the primary vehicle for institutional Ethereum exposure. But over the past year, DAT companies — entities that issue trust shares backed by physical ETH — have steadily accumulated. Their combined holdings now exceed those of all spot ETFs combined. The exact figures aren't public, but the trend is clear: trusts are winning the custody race.
BitMine's growing stash
BitMine alone holds close to 5% of all Ethereum in circulation. That's a massive concentration for a single firm. The company has been buying ETH aggressively, likely to back its own trust products or for its mining operations. The move gives BitMine outsized influence over the network's supply dynamics.
What this means for Ethereum's market
The shift from ETFs to trusts changes the game. Trusts typically don't allow redemptions in the same way ETFs do, meaning their ETH is more locked up. That could reduce available supply and add upward pressure on price — or it could create a bottleneck if a large holder decides to sell. Either way, the market is now more dependent on a handful of custodians.
Spot ETFs, meanwhile, have seen mixed flows. Some have lost assets as investors rotate into trust products. The timing isn't great for ETF issuers, who spent heavily on marketing and regulatory approvals.
The coming months will show whether spot ETFs can regain ground or if DAT companies continue to widen their lead. Regulators may also take a closer look at the concentration risk posed by firms like BitMine.
