Ether Supply on Exchanges Plunges to 9-Year Low as Wall Street and Treasuries Drive Institutional Accumulation

Ethereum (ETH) exchange balances have plummeted to their lowest levels since 2016, driven by an unprecedented wave of institutional buying and digital asset treasury accumulation. With only 14.8 million ETH now held on centralized platforms a figure not seen in nine years the market is witnessing what analysts are calling a “Wall Street glow up” for Ethereum as corporate treasuries and spot ETF inflows soak up supply at an accelerating rate.

ETH Supply on Exchanges Hits Historic Lows

Centralized exchanges now hold just 14.8 million ETH, according to data from Glassnode well below levels seen for nearly a decade.

• This milestone reflects a multi-year trend: ETH reserves on exchanges have been cut in half over the past two years, with a sharp 20% drop recorded since mid-July 2025.
• CryptoQuant’s ETH exchange supply ratio has also hit a nine-year low of 0.14, underlining that adoption is shifting heavily toward long-term holding, staking, and DeFi yields over short-term trading and speculation.

Record Outflows Signal Bullish Accumulation

The outflow of ETH from exchanges has hit a new high. Glassnode reported net withdrawals of 2.18 million ETH in just one day last week, a level surpassed only five times in a decade. The 30-day moving average of net flows is now at its highest since late 2022, putting further pressure on exchange liquidity.

“Large-scale withdrawals often indicate a shift toward self-custody or DeFi deployments, reducing exchange liquidity and immediate selling pressure,” explained CryptoQuant market analyst CryptoOnchain.

Digital Asset Treasuries and ETFs Accelerate ETH Hoarding

Since April, 68 major institutional entities and treasuries have acquired 5.26 million ETH (over $21 billion), with most of this supply staked or held long-term. BitMine alone now controls over 2% of total supply. Over the same period:

• US spot Ether ETFs have absorbed 6.75 million ETH worth $28 billion and representing 5.6% of total supply.
• Combined, nearly 10% of Ethereum’s entire circulating supply is now claimed by institutional buyers and staked in long-term DeFi or custodial solutions.

The “Wall Street Glow-Up” and Future Price Outlook

BTC Markets analyst Rachael Lucas described the institutional pivot as a “Wall Street glow-up,” with traditional finance treasuries stacking ETH and top analysts, like Tom Lee, setting price targets between $10,000 and $15,000 by year-end.
“Ethereum is getting the Wall Street glow-up. Treasuries are stacking ETH, exchange supply hits 9-year low, and Tom Lee’s calling $10K to $15K by year-end,” Lucas said.

Short-Term Volatility Remains, But Long-Term Sentiment Bullish

Despite this bullish underlying trend, the ETH price pulled back sharply over the past week falling more than 11% to dip below $4,100 amid broader crypto market volatility and liquidations. Some analysts point to continued selling from long-term holders as a headwind, though outflows continue to dominate and bolster the long-term accumulation thesis.

Key Takeaways

• Ether on exchanges at a nine-year low (14.8 million ETH), signaling historic accumulation and reduced sell-side pressure.
• Institutional demand from treasuries and spot ETFs now absorbs nearly 10% of all ETH, with aggressive staking as a primary use.
• Exchange outflows and self-custody reinforce the bullish case for long-term ETH appreciation.
• Short-term risks persist, with recent corrections and whale liquidations, but the backdrop for a supply-driven rally is strengthening.

As Ethereum pivots into an era of institutional trust and reduced liquid supply, the groundwork is being laid for potential new highs provided bulls can weather near-term volatility and unlock the value of the “Wall Street glow-up”.