The cryptocurrency market remains active amid rising expectations of macro liquidity, with particularly strong institutional demand signals for Ethereum (ETH). David Duong, head of Coinbase Institutional research, stated on social media today that ETH demand is far from over. Since early August, leading ETH treasury reserve companies have accumulated over 795,000 ETH (worth about $3.6 billion), and these institutions now control over 2% of the total ETH supply. Meanwhile, BitMine Immersion Technologies (BMNR) has raised $20 billion in new funding, with a total purchasing power of $24.5 billion.
July 2014: First issuance, priced at $0.308
October 2015: After ETH fell to its historical low, it stabilized at around $1 after a period of adjustment.
November 2021: Historical highest price of $4871
2024: Highest price of $4108 and lowest price of $2051
August 2025 (as of press time): Highest price of $4790 and lowest price of $3355
From BMNR's perspective, ETH supply tightening
David Duong's observations are based on on-chain and corporate announcement data. BitMine Immersion Technologies (BMNR), as the main player, has become the world's largest ETH treasury holder. As of August 10, it holds over 1.15 million ETH, valued at nearly $4.96 billion, accounting for about 1% of the total supply. The company has raised nearly $4.5 billion through stock sales, almost all of which has been used for ETH acquisitions, leaving only $723 in remaining funds. BMNR plans to continue buying ETH through a newly authorized $20 billion stock sale, targeting to lock in 5% of the total supply (currently valued at about $25 billion). This strategy is led by Fundstrat co-founder Tom Lee, and the company has rapidly increased its holdings from 833,137 ETH (worth $3 billion) to 1.15 million ETH, adding 320,000 ETH worth $2 billion in just one week.
SharpLink Gaming (SBET) and others are also following suit, with SharpLink holding approximately 728,800 ETH and raising $900 million for further acquisitions. These companies employ staking strategies to lock in their holdings, with BMNR having 99% of its ETH staked, generating an annualized return of 3% (about $87 million), leveraging low-cost energy to enhance network security and reinforce scarcity. Overall, since early August, institutions have net bought 795,000 ETH, raising their control ratio to over 2%, consistent with Duong's data. This reflects corporate treasuries shifting towards ETH: transitioning from Bitcoin mining companies to ETH reserve companies, viewing ETH as a 'programmable asset.'
On-chain data corroborates strong demand. ETH ETF weekly trading volume reached $17 billion, with cumulative inflows of $10.2 billion, led by funds like Blackstone. BMNR executed a significant single transaction, purchasing 135,000 ETH (worth $600 million) through FalconX, Galaxy Digital, and BitGo within 10 hours, with total holdings reaching 1.297 million ETH, valued at $5.77 billion. This speed sets a record, highlighting institutions absorbing supply through over-the-counter platforms to avoid market shocks.
Interest rate cut expectations and the evolution of ETH positioning
Why did institutions accelerate in August?
On a macro level, the Federal Reserve has an 82.6% probability of a rate cut in September, indicating liquidity injection. The greed index of 60 suggests that market sentiment is optimistic, with crypto assets benefiting from a rebound in risk appetite. As the leading altcoin, ETH benefits from the decline in Bitcoin's dominance (down from 65% at the beginning of the year to 59%).
On the ecological level, ETH is transitioning from speculation to reserves. Companies like BMNR view ETH as 'government bond-grade collateral' supporting DeFi and tokenization. The total asset management scale of tokenized assets has reached $270 billion, with ETH accounting for 55%, PayPal's PYUSD stablecoin exceeding $1 billion, and Blackstone's BUIDL fund expanding. Monthly on-chain transaction value has reached $238 billion, growing 70%; transaction volume stands at 46.64 million, with active addresses at 17.55 million. The staking ratio exceeds 30%, locking in supply and further tightening circulation. Institutional investors such as ARK's Cathie Wood, Founders Fund, Pantera, etc., support BMNR, injecting confidence. The company's average daily trading volume is $2.2 billion, ranking 25th in the U.S., surpassing JPMorgan and Micron Technology. This enhances liquidity, facilitating ETF arbitrage and institutional allocation. BMNR has also announced a $1 billion stock buyback, reducing supply and increasing per-share ETH exposure.
Short-term fluctuations and long-term supply shocks
ETH's current price is $4369, down 1.66% in 24H, but institutional buying provides a buffer. Since early August's rebound, ETH briefly broke $4790. ETF inflows reached $2.9 billion, with analysts targeting $4800-$5000. BMNR's average holding cost is $3491.86, realizing a floating profit of $423 million.
In the long term, supply shocks may push prices higher. If corporate treasuries hold 10% of circulating ETH, combined with staking and ETF lock-ins, liquid supply could be halved. This creates reflexivity: scarcity pushes prices, and rising prices attract adoption. ETH's market capitalization is $534.5 billion, with a 24H trading volume of $78.2 billion, low inflation, and dominance from DeFi.
However, risks are present. In the short term, L2 transfer trading volume diverts from the mainnet; macro data fluctuations like PPI affect correlations. Although BMNR's stock price has risen (11.7% intraday, 62% weekly), its valuation is high (P/S ratio of 30.36, P/B ratio of 57.52), and earnings are negative. Regulatory uncertainties exist, such as EU bank reviews and the UK's Revolut pushing forward, but Monzo has frozen accounts.
The daily chart shows that recent prices have continued to decline from a high of 4576, forming a series of bearish candles, and are currently in a downtrend. Today's low of 4307.3 is close to the previous low area, which may provide support.
The hourly chart shows a continuous low-level fluctuation, with small candlestick bodies, indicating that market sentiment is becoming cautious.
This article is for informational sharing only and does not constitute any investment advice to anyone.
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