Ethereum treasury purchases surpass ETFs as exchange reserves dwindle.

Ethereum’s liquid supply is rapidly disappearing — and a fresh wave of buyers is intensifying the squeeze.

After a year of dominating the market, exchange-traded funds (ETFs) are now facing stiff competition from a rising force: Ethereum treasury firms. These new players are aggressively accumulating ETH, and the race for the dwindling supply is heating up.

Together, ETFs and treasury firms have snapped up around 3.2% of Ethereum’s circulating supply — worth nearly $14 billion — since June 1, according to Geoff Kendrick, global head of digital assets research at Standard Chartered.

In a note to clients on Wednesday, Kendrick pointed out that treasury buying has accelerated in recent weeks, adding even more pressure to exchanges, which are being rapidly drained of Ether.

Data from CryptoQuant shows that centralized exchanges now hold just 18.8 million ETH, valued at just under $70 billion — a sharp drop from about 28 million in mid-2022. That’s the lowest level since 2016, when ETH was trading below $20.

Kendrick argues that Ethereum treasuries could now be a more attractive investment than spot ETFs. These companies are trading closer to the actual value of their Ether holdings — a key metric known as the NAV (Net Asset Value) multiple.

Take SharpLink, for example. Its NAV multiple has dropped from over 2.5 in July to just above 1, signaling a much more grounded valuation — and potentially less hype-driven risk.

“I see the ETH treasury companies as a better asset to buy than the US spot ETH ETFs,” Kendrick said, citing benefits like staking rewards and more favorable regulatory flexibility.

Could This Be Ethereum’s 2017 Moment?

Some analysts are drawing comparisons to Bitcoin’s explosive run in 2017.

Fundstrat’s Tom Lee recently told CNBC that Ethereum is “Wall Street’s preferred chain” and predicted its price could soar to $30,000 — nearly 10 times its current value — if the current bull cycle continues.

With Standard Chartered projecting that treasury firms could eventually control up to 10% of Ethereum’s supply, we may only be in the early innings of this accumulation phase.

Market Snapshot

• Bitcoin: +0.9% in the past 24 hours, now trading at $115,000

• Ethereum: +2.8%, currently at $3,720

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