Vitalik Buterin, co-founder of $ETH , has expressed support for Ether treasury companies, but he also warned that the trend could become risky if handled poorly. In a recent interview, he said that more public companies holding Ether is beneficial because it helps expose the token to more investors.

He believes these companies provide useful services and give people more options, especially those with different financial situations. The rise of crypto treasury firms, which buy and hold large amounts of crypto like $BTC and Ether, has become a popular trend on Wall Street.

However, Buterin cautioned that too much borrowing or leverage could harm Ethereum's future. He explained that a drop in ETH’s price could lead to forced sales, driving the price even lower and hurting its reputation.

Still, Buterin is confident that Ethereum investors are responsible enough to prevent such a collapse, saying they’re not like the followers of Do Kwon, the co-founder of the failed Terra blockchain.