Ether reserves on centralized exchanges have fallen to the lowest level in three years as demand grows from investment funds and corporate buyers.
According to data from CryptoQuant, reserves have dropped by nearly 10.7 million ETH since peaking at around 28.8 million in September 2022. Holdings now stand at about 17.4 million ETH, with roughly 2.5 million ETH leaving exchanges in the past three months alone.
The shrinking supply comes as new channels for Ether exposure have gained traction. Spot ETH exchange-traded funds (ETFs), launched in July 2024, have since attracted net inflows of more than $13 billion, according to CoinGlass data. Between June and August, the funds pulled in over $10 billion in net inflows, led by a record $5.4 billion in July alone.
Corporate treasuries are also driving demand. Several publicly traded companies have announced ETH treasuries over the past few months, with regular corporate purchases affecting the token's supply on exchanges.
Related: Who owns the most Ether in 2025? The ETH rich list, revealed
ETH Treasury companies on the rise
SharpLink Gaming emerged as one of the earliest public companies to pivot its reserves into Ether in 2025. Backed by a $425 million private placement, the company launched a treasury strategy in May, with holdings in late August reaching 797,704 ETH, worth about $3.5 billion at this writing.
In July, BitMine Immersion Technologies also joined the trend, revealing accumulated about 1.86 million ETH — roughly 1.5% of the token's total supply. A third major entrant, The Ether Machine, announced in September 495,000 ETH in holdings and an upcoming Nasdaq listing.
According data from Ethereum Treasuries, 17 publicly traded companies are known to hold Ether on their balance sheets, collectively controlling more than 3.6 million ETH.
One key appeal of ETH as a reserve asset is its ability to earn yield, a Bitfinex analyst told Cointelegraph. “Unlike Bitcoin, ETH is both a macro asset and a productivity asset, generating yield via staking and securing over $100 billion in tokenized assets across L2s and DeFi.”
Staking is the process of locking up cryptocurrency to help secure a blockchain network and, in return, earning rewards paid out in that same token.
On Tuesday, Ethereum’s staking entry queue has climbed to its highest level since 2023, with 860,369 ETH worth about $3.7 billion waiting to be staked.
Related: Staked Ethereum hits 35M ETH high as liquid supply declines
ETH moving into ETFs
Alongside corporate treasuries, Ether is also being absorbed by spot exchange-traded funds (ETFs). The products saw a slow start after their US debut in 2024, but demand picked up this July as a friendlier regulatory environment for crypto assets supported renewed institutional interest.
That surge is led by BlackRock’s iShares Ethereum ETF (ETHA), which has become one of the fastest-growing ETFs on record, with assets worth over $16 billion on Tuesday.
According to data from CoinMarketCap, spot ETH ETFs collectively hold about $24 billion in assets under management (AUM).
Some analysts believe the demand reflects more than short-term speculation. Fabian Dori, chief investment officer of Sygnum, recently told Cointelegraph:
After an extended period of underperformance relative to Bitcoin and a souring investor sentiment, Ethereum has recently experienced a significant revival in the recognition of both its adoption rate and value proposition.
According to Dori, staking is the next frontier for Ether ETFs. “If spot ETH ETFs were permitted to stake their holdings… the ability to accrue an additional yield within a well-established, regulated and exchange-traded structure would likely make these products more attractive and attract additional assets.”
Unsurprisingly, several ETF issuers have recently moved to add staking features to their Ether funds.
BlackRock filed through Nasdaq to add staking to its iShares Ethereum ETF, while Fidelity has amended its spot Ether ETF proposal to allow a portion of assets to be staked.
The SEC is expected to rule on staking features by October, when final application deadlines come due.
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