10% of Ethereum now locked in ETFs and treasuries – does ETH supply squeeze follow?

Institutional demand for Ethereum has climbed to new highs during this market cycle.

According to Strategic ETH Reserve data, spot Ethereum exchange-traded funds (ETFs) and Digital Asset Treasury Companies (DATCOs) now control more than 12.5 million ETH, or roughly 10% of the token’s circulating supply.

This marks a dramatic expansion from April, when these institutions collectively held about 4 million ETH, representing less than 3% of the total supply.

Institutional Ethereum Holdings (Source: Strategic ETH Reserve)

The rise reflects how institutional capital has increasingly turned to Ethereum exposure through regulated ETFs and on-chain treasury allocation amid the growth of the network fundamentals in tokenized assets and stablecoins.

According to Token Terminal data, decentralized applications on Ethereum are hosting more than $365 billion in user assets, while the network’s native token trades at a 1.45x multiple of its ecosystem TVL.

Ethereum ETFs holding

Data from Strategic ETH Reserve shows that spot Ethereum ETFs currently hold 6.92 million ETH, valued at about $30.76 billion based on an ETH price of $4,448 at press time. The assets are distributed across nine products from eight issuers.

BlackRock leads by a wide margin, managing over 4 million ETH worth $17.6 billion, more than half of all ETF-held Ethereum. Grayscale follows with approximately 1.8 million ETH split between its ETHE and ETH trusts.

Ethereum ETFs Holdings as of Oct. 8 (Source: Strategic ETH Reserve)

Fidelity ranks third with around 778,200 ETH, while Bitwise holds roughly 151,600 ETH. Other issuers, including VanEck, Franklin Templeton, Invesco Galaxy, and 21Shares, each hold under 100,000 ETH.

The strong accumulation trend aligns with surging investor interest in regulated Ethereum exposure.

According to SosoValue data, cumulative net inflows into Ethereum ETFs have surpassed $15 billion since launch, signaling that institutional appetite remains robust despite market volatility.

ETH treasury companies

Meanwhile, Ethereum-focused Digital Asset Treasury Companies (DATCOs) collectively hold 5.66 million ETH, equivalent to 4.68% of the circulating supply and valued at $25.19 billion.

This figure highlights Ethereum’s growing prominence as a corporate treasury asset, second only to Bitcoin in institutional accumulation.

July and August marked the peak of these treasury expansion moves, as several firms joined the acquisition wave. Although momentum has since cooled, leading holders continue to expand their stakes.

BitMine Immersion Tech tops the list with 2.83 million ETH, worth about $12.59 billion, representing 2.34% of the digital asset supply. The firm aims to eventually control 5% of total ETH, which it views as strategic preparation for broader network adoption.

Top 10 ETH Treasury Companies (Source: Strategic ETH Reserve)

However, the ETH treasury play has drawn criticism from industry experts who argue that South Korean retail money is now propping up some of these companies.

Bitcoin advocate Samson Mow claimed that these retail traders have about $6 billion in chasing the next “Strategy play.”

Nonetheless, asset management firm VanEck has argued that the strong wave of institutional adoption shows that ETH is a stronger contender to Bitcoin in the race for dominance as a store of value.

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