In a recent post on X (formerly Twitter), Ark Invest CEO Cathie Wood weighed in on the sharp increase in Ethereum (ETH) unstaking activity, attributing the trend to a mix of retail rewards and institutional repositioning within the evolving digital asset landscape.

Responding to a query from ARK’s Chief Futurist Brett Winton on July 26, Wood pointed to a growing shift by both everyday crypto holders and larger investment firms aiming to capitalize on better returns through traditional financial structures that mirror crypto exposure.

“Robinhood offering a 2% match for crypto transfers, and VCs and other investors shifting staked ETH into Treasury companies (DATs) to double their money when lockups expire,” Wood noted.

From Crypto Lockups to Treasury Company Strategies

Wood emphasized how liquidity events—like expiring ETH staking lockups—are driving investors to move capital into Treasury-style public companies, echoing the approach taken by MicroStrategy (MSTR) and Bitmine Immersion Technologies (BMNR).

These entities, she said, represent digital asset treasuries (DATs) that traditional wirehouse financial advisors can access via public equity markets—bypassing the need for direct token custody.

• MicroStrategy (now Strategy) has been long committed to a Bitcoin-first treasury model, using BTC as a core reserve asset.
• Bitmine, in contrast, is making a bold Ethereum play, aiming to accumulate and stake 5% of the entire ETH supply, becoming one of the most aggressive institutional ETH holders to date.

This model enables institutional clients to gain crypto exposure through regulated equity channels, creating a bridge between Wall Street and Web3.

Retail Incentives Are Also in Play

While institutions reposition their holdings, retail investors are also responding to direct incentives—most notably Robinhood’s 2% crypto transfer match, which encourages users to bring assets on-platform.

Such offers create a short-term pullback in staked ETH, as users unlock and relocate funds to platforms offering yield-matching or reward mechanisms, boosting liquidity and reducing on-chain lockup durations.

Differing Views on the Unstaking Trend

The rise in ETH unstaking has sparked debate across the crypto space:

• Critics argue the trend may indicate waning confidence in long-term staking returns or smart contract lockups.
• Supporters, however, see it as a strategic transition—reflecting increased interest in more liquid, equity-driven crypto exposure, especially as U.S. regulators warm up to ETF and trust-based models.

Key Takeaways

• Ethereum unstaking is not necessarily a sign of fear—it may signal smarter capital reallocation.
• Treasury stocks like MSTR and BMNR are evolving into institutional crypto gateways.
• As lockups expire, both venture capitalists and retail users are leveraging liquidity events for higher-yield and flexible opportunities.

With regulatory clarity improving and equity-based crypto vehicles gaining traction, Ethereum’s use cases—and the ways investors choose to interact with it—are entering a new phase of maturity.