TL;DR
- Exchange Reserves: Ether on centralized exchanges has dropped to 17.4M, the lowest in three years, reflecting sustained outflows since 2022 and tightening available supply.
- Institutional Demand: Spot ETFs and corporate treasuries collectively control billions in ETH, with record inflows and major holdings from firms like BlackRock and SharpLink.
- Staking Impact: A surge in staking queues and potential ETF staking approval could further reduce liquid supply, amplifying upward price pressure.
Ether reserves on centralized exchanges have dropped to their lowest level in three years, signaling a tightening supply that could influence market dynamics. Data from CryptoQuant shows holdings have fallen by nearly 10.7 million ETH since September 2022, now standing at about 17.4 million. The drop is caused by increasing demand from spot ETFs and corporate treasuries.
ETFs Absorb Billions in ETH
Spot Ether ETF, launched in July 2024, has rapidly become a major force in the market. As reported by CoinGlass, these products have drawn in over $13 billion in net inflows, with over $10 billion coming in from June to August. In July, there was a peak of $5.4 billion in inflows. BlackRock’s iShares Ethereum ETF (ETHA) has become one of the quickest-growing ETFs ever, managing more than $16 billion in assets. Collectively, spot ETH ETFs now manage around $24 billion, reflecting strong institutional interest.
Corporate Treasuries Join the Rush
Publicly listed companies are increasingly incorporating Ether into their balance sheets. SharpLink Gaming, supported by a $425 million private placement, initiated its ETH treasury strategy in May 2025 and currently possesses 797,704 ETH valued at approximately $3.5 billion. BitMine Immersion Technologies has gathered around 1.86 million ETH, which accounts for about 1.5% of the total supply. The Ether Machine revealed its holdings of 495,000 ETH and announced plans for a Nasdaq listing. In total, 17 public companies manage over 3.6 million ETH.
Staking Demand Tightens Supply Further
Ether’s attractiveness as a yield-producing asset is contributing to the supply crunch. Unlike Bitcoin, ETH can be staked to help secure the network and earn rewards. As of Tuesday, the staking entry queue hit its highest point since 2023, with 860,369 ETH valued at approximately $3.7 billion waiting to be activated. Analysts suggest that if ETFs were allowed to stake their holdings, demand could rise even further.
Regulatory Decisions Could Shape Next Phase
Multiple ETF providers, such as BlackRock and Fidelity, have submitted applications to incorporate staking options into their Ether funds. The US Securities and Exchange Commission will decide on these proposals by October. Approval could enhance the attractiveness of ETH ETFs by combining regulated exposure with staking yields, potentially drawing in additional institutional capital.
