The second-largest cryptocurrency by market capitalization, Ethereum, has seen its price surge to nearly $4,500, largely driven by accumulation from significant holders, referred to as ‘millionaires’ and ‘small billionaires.’ These so-called whale investors, who maintain positions ranging from 1,000 to 100,000 ETH, have notably boosted their holdings by 14% in the past five months, according to analysis from Santiment.
Since early April, these major players have collectively acquired approximately 5.54 million ETH, valued at around $24.2 billion at current market rates. This accumulation has contributed to a substantial portion of the total Ethereum supply, with 42.5 million ETH—roughly 35% of the circulating supply—held by these whales.
In a related trend, the supply of ether available on exchanges has drastically declined, reaching three-year lows. Data from CryptoQuant indicates that exchange reserves are currently at 17.26 million ETH, a significant drop from 28.8 million ETH reported in September 2022.
The distribution of Ethereum ownership highlights further nuances within the market. Notably, whale wallets control about 35% of the total issuance of 120.7 million ETH. Additionally, U.S. spot Ethereum ETFs manage around 6.6 million ETH, accounting for 5.42% of the total supply. Among organizations with treasury holdings in Ethereum, the largest stake belongs to Bitmine Immersion Tech, which holds 1.87 million ETH, constituting 1.54% of the overall issuance.
However, it’s essential to understand that the figures relating to whales, ETFs, and treasury holdings should not simply be summed, as there may be overlaps among these categories.
Warnings have also emerged regarding potential risks for public treasuries investing in Ethereum. Joseph Shalom, co-founder of SharpLink, cautioned that the pursuit of yield through holding Ethereum can expose companies to significant financial risks. As the market continues to evolve, both institutional and individual investors must remain vigilant about the inherent risks and rewards associated with cryptocurrency ownership.
