Institutional Players Scoop Up Over 3% of All Ethereum

Ethereum’s recent price rally may have found its primary driver—massive institutional accumulation. According to ETF expert Nate Geraci, institutions have collectively bought 3.2% of the entire ETH supply in just over two months.

Posting on X, Geraci pointed to two distinct forces behind the surge:

• Corporations adding ETH to their treasury reserves
• Newly launched U.S. spot ETH ETFs absorbing market supply

Each of these groups has acquired approximately 1.6% of Ethereum’s total circulating supply since early June. Together, they now hold more than 3.2%—a dramatic shift in market dynamics.

Spot ETH ETFs See Historic Inflows

The bulk of this institutional demand came in July. According to data from SoSoValue, spot ETH ETFs recorded a net inflow of $5.43 billion in a single month—surpassing all prior months combined. This surge marked the kickoff of Q3 with significant momentum.

This level of accumulation helped push Ethereum’s price up more than 85% in under two months, underscoring the influence institutional players now wield in the market.

Excitement Builds—But So Do Concerns

While the crypto community largely celebrated this influx as bullish for Ethereum’s long-term growth, some analysts are sounding cautionary notes.

A vocal minority raised concerns about centralization risks. If a small number of institutional players control a growing share of ETH, it could pose challenges in the event of sudden large-scale liquidations. One user even described it as a potential “supply black hole.”

Still, the dominant sentiment remains optimistic. For many in the Ethereum ecosystem, institutional adoption through ETFs and treasury holdings is a clear sign that ETH is maturing into a recognized financial asset.