Emre Yumlu 
The amount of Ethereum (ETH) held on centralized exchanges has dropped to its lowest level since 2016, falling to just 14.8 million ETH. This sharp decline highlights a growing trend of institutional accumulation and rising inflows into spot Ethereum ETFs.
A Steady Shift Away From Exchanges
Over the past few years, a consistent decline has been observed in ETH balances across centralized exchanges. Since mid-2020, available exchange supply has fallen by nearly 50%. More recently, since mid-July, exchange balances have dropped another 20%, pointing to accelerating withdrawals.
Data from CryptoQuant shows that ETH held on exchanges now represents only 14% of the total supply — the lowest ratio since 2016. This typically signals that investors are moving their holdings into cold storage, staking pools, or DeFi platforms to earn yield, rather than keeping them on trading platforms.
Record Net Outflows Point to Long-Term Holding
Exchange outflows are also hitting historic levels. According to CryptoQuant, the 30-day moving average of ETH net flows recently reached its highest point since late 2022. Glassnode reported that, on a single day this week, net outflows reached 2.18 million ETH — a figure surpassed only five times in the past decade.
Analysts suggest that this behavior reduces short-term selling pressure and underscores a broader shift toward long-term holding strategies.
Institutional Treasuries Continue Accumulating ETH
One of the main drivers behind the accelerated outflows has been corporate treasuries aggressively buying Ethereum. Since June, firms such as BitMine — chaired by Tom Lee — have significantly expanded their ETH holdings, with BitMine alone now controlling over 2% of the total supply.
Reports from StrategicEthReserve show that, since April, around 68 entities have acquired 5.26 million ETH, valued at roughly $21.7 billion. Collectively, this represents 4.3% of the entire supply. Notably, the majority of these holdings are being staked rather than left idle on exchanges.
Rising Demand Through Spot ETFs
Spot Ethereum ETFs in the United States have also experienced strong inflows. Current ETF holdings have reached 6.75 million ETH — worth nearly $28 billion — equivalent to 5.6% of the total supply.
When combined with institutional treasuries, this means that nearly 10% of all ETH in circulation has been absorbed by large-scale entities, with demand accelerating over the past few months.
Analysts Dub It Ethereum’s “Wall Street Glow-Up”
The growing interest from major financial players has led analysts to describe this shift as Ethereum’s “Wall Street glow-up.” Rachael Lucas, an analyst at BTC Markets, noted that treasuries continue to stack ETH, exchange reserves have dropped to historic lows, and Tom Lee has even projected a year-end price target between $10,000 and $15,000.
Despite these bullish signals, Ethereum has faced short-term price pressure. ETH has fallen more than 11% over the past week, dipping below $4,100.
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