VanEck Report: Institutional Crypto Holdings Hit $135B as Ethereum’s Fusaka Upgrade Nears

Institutional confidence in digital assets strengthened in September, according to a new market report by VanEck, which revealed that total holdings in Digital Asset Treasuries (DATs) have reached approximately $135 billion.

The firm said this surge reflects a deepening wave of institutional adoption, particularly through Ethereum staking, which has become a cornerstone of yield and governance strategies among large investors.

Concentration Risks in Ethereum Staking

While VanEck highlighted Ethereum’s growing institutional appeal, analysts warned that the rising concentration of staked assets could present dilution risks for investors not participating in staking. As rewards and voting power consolidate among major validators, the report cautioned, smaller stakeholders may see reduced influence over network governance and returns.

Ethereum’s Fusaka Upgrade Set for December

The report also spotlighted Ethereum’s next major upgrade, Fusaka, slated for December. This update aims to enhance Layer-2 scalability by expanding blob capacity and allowing validators to confirm blocks through probabilistic sampling, a process expected to lower rollup transaction costs and improve network efficiency.

VanEck believes these changes could significantly bolster Ethereum’s competitiveness but noted that technical progress alone may not offset declining fee revenues amid subdued market activity.

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Mixed Market Trends and Slowing Volatility

VanEck’s September data showed uneven performance across top digital assets. Out of 35 major cryptocurrencies, 23 closed the month lower. Bitcoin rose 5%, while Ethereum slipped 5%, as broader market volatility declined sharply. Blockchain revenues fell 16% month-over-month, with Ethereum down 6%, Solana off 11%, and Tron plunging 37%.
The firm attributed the weakness to a steep drop in volatility – down 40% for ETH, 26% for BTC, and 16% for SOL – which curtailed speculative trading and validator earnings.

Futures Activity Outpaces Spot Markets

Despite muted spot trading, derivatives activity accelerated. Futures volumes jumped 30% from August, buoyed by new token listings and liquidity incentives from platforms such as Aster, part of the Binance ecosystem.

VanEck concluded that although prices have plateaued, the expansion of institutional treasuries and Ethereum’s upcoming Fusaka upgrade demonstrate that the crypto industry’s underlying infrastructure remains firmly in a growth phase.