The Ethereum ecosystem is buzzing with activity as institutional interest surges and Ethereum treasury companies aggressively accumulate tokens, setting the scene for a potentially explosive supply squeeze. As of mid-2025, this growing trend suggests Ethereum could be on the cusp of reaching new all-time highs, driven by tightening supply dynamics and strong demand.
Institutional Treasury Companies Accumulating Ethereum in Bulk
Currently, there are roughly a dozen publicly listed Ethereum treasury companies actively purchasing and holding significant amounts of ETH. Among them, Bitmine Immersion Technologies stands out as the largest holder, having already acquired over 1.5 million Ethereum tokens since June 2025. This purchase represents nearly 1.25% of the total ETH supply, a remarkable feat within a short timeframe. Bitmine’s stated long-term objective is to accumulate up to 5% of the entire Ethereum supply— an ambitious target that could drastically reduce circulating availability.
Following closely is Sharplink, holding the second-largest treasury position. They have amassed nearly 750,000 ETH tokens, about 0.62% of the entire supply, in just two months. Sharplink has also raised an additional $537 million earmarked exclusively for purchasing more Ethereum, signalling their strong institutional conviction in ETH’s long-term value.
Together, these two entities have bought close to 2% of Ethereum’s circulating supply in approximately 90 days, a striking figure that highlights unprecedented institutional demand on the market.
What Is a Supply Squeeze and Why Does It Matter?
The term “supply squeeze” refers to a market condition where the available supply of an asset significantly diminishes while demand keeps rising. This disparity often leads to a sharp upward movement in price as buyers compete for a limited quantity of tokens. In Ethereum’s case, the aggressive accumulation by treasury companies is drying up the available supply on exchanges and over-the-counter (OTC) markets.
Supporting this observation, Wintermute—the leading crypto market maker—has reported a near depletion of Ethereum available for OTC sales. With fewer tokens accessible for traders and investors to purchase immediately, the price typically faces upward pressure.
Price Sensitivity — Ethereum vs. Bitcoin
Research shows that Ethereum is considerably more price-sensitive compared to Bitcoin. While it takes roughly $135 million in capital to move Bitcoin’s price by just 1%, Ethereum requires less than $70 million for the same price impact. This heightened sensitivity means it would take just over $1 billion of buying capital to lift Ethereum by 15%, potentially propelling it to fresh all-time highs.
While these figures represent theoretical scenarios assuming all capital impacts the market simultaneously—which is unlikely—they underline Ethereum’s vulnerability to significant price moves fueled by concentrated institutional buying.
What Could This Mean for Investors?
This ongoing accumulation trend, combined with Ethereum's relative price sensitivity, paints a bullish picture. If treasury companies maintain their current purchase pace and new major buyers step in, Ethereum could experience a sustained supply squeeze, triggering sharp price rallies in the coming months.
However, some caution is warranted. After a substantial 40% rally within a single month, short-term consolidation might occur before the next leg up begins. Smart traders are already locking in profits; for example, some have booked gains around 21% recently, leveraging Ethereum’s momentum while managing risk.
Historically, trading strategies focused on Ethereum have delivered impressive returns, with documented gains ranging from 28% to over 80%. Meanwhile, prudent stop-loss management has limited losses to under 5%, underscoring the benefits of disciplined trading in a volatile environment.
Final Thoughts
Ethereum’s supply dynamics are shifting dramatically, driven by aggressive purchases from institutional treasury companies and increased market demand. With nearly 2% of Ethereum’s circulating supply taken off the market by just two major players in under three months, the groundwork for a supply squeeze is unmistakably laid.
Combined with Ethereum’s greater price sensitivity compared to Bitcoin, this environment is primed for potentially explosive growth. While short-term volatility and consolidation might still unfold, the medium to long-term outlook for Ethereum appears bullish—making it a critical asset to watch in the evolving cryptocurrency landscape.
Investors and traders should keep an eye on institutional buying trends and prepare for heightened price swings as Ethereum navigates this pivotal moment. The next big move could well be on the horizon.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult a professional advisor before making any investment decisions.
By Wolfy Wealth - Empowering crypto investors since 2016
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Disclosure: Authors may be crypto investors mentioned in this newsletter. Wolfy Wealth Crypto newsletter, does not represent an offer to trade securities or other financial instruments. Our analyses, information and investment strategies are for informational purposes only, in order to spread knowledge about the crypto market. Any investments in variable income may cause partial or total loss of the capital used. Therefore, the recipient of this newsletter should always develop their own analyses and investment strategies. In addition, any investment decisions should be based on the investor's risk profile.
