- Corporate treasuries, led by firms like Bitmine, now hold over 3.3 million ETH (2.75% of supply).
- Spot Ethereum ETFs have rapidly accumulated nearly 5% of the total ETH supply, led by BlackRock.
- This massive institutional accumulation is creating a supply squeeze under the surface of the market.
Corporate treasuries and ETFs now control nearly 8% of Ethereum’s total supply, a stunning accumulation that signals a stealthy, institutional-led supply shock is underway. While the token trades near $4,590, the quiet removal of millions of ETH from the open market by major players like BlackRock and a new class of corporate buyers points to a major shift in the market’s structure.
Who Are the Biggest Institutional Buyers?
Asset manager BlackRock is a primary driver of this trend. Since May, the firm has accumulated more than 2.26 million ETH. While these holdings are for clients, the sheer pace of the buys, including the latest $300 million purchase, signals a massive spike in institutional demand. This activity follows the success of its Bitcoin ETF, leading to speculation that a similar supply squeeze could happen with Ethereum.
Corporate treasuries have also become major players. Six months ago, corporate ETH allocations were small. Today, companies collectively hold over 3.3 million ETH, or 2.75% of the total supply, worth about $14.5 billion.
Bitmine, led by analyst Tom Lee, has been the most aggressive, buying 1.7 million ETH in the past 50 days alone. Lee stated that Bitmine’s goal is to own 5% of the total ETH supply.
How Is This Affecting ETH Supply?
This multi-front accumulation is creating a supply shock. Ethereum ETFs now hold around 5% of the supply, a figure that is quickly approaching the 6% held by Bitcoin ETFs. Analysts increasingly refer to ETH as “digital oil,” an essential commodity that backs stablecoin and blockchain infrastructure for the entire financial services industry. With institutional adoption accelerating, the current price volatility may represent a key buying opportunity before the end of the year.
ETH Short-Term Price Outlook Based on Institutional Buys
The short-term technicals are sending mixed signals. Ethereum has been volatile, hitting intraday highs of $4,650 before dropping below $4,500.
Trading volumes fell nearly 19% to $40.77 billion over the last 24 hours, showing a pause in market activity.
Technical indicators present mixed signals. The Relative Strength Index (RSI) is at 57.41, above neutral but below recent highs, pointing to slight momentum.
The Moving Average Convergence Divergence (MACD) indicator shows a small bearish divergence, though ETH remains supported above longer-term averages.
Analysts note that a decisive break above the $4,650–$4,700 range would open a path toward $4,900 and potentially challenge the $4,800 resistance for a rally toward $6,000.
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Source: https://coinedition.com/ethereum-eth-supply-shock-institutional-accumulation/
