Ethereum News Update: Major Institutions View Ethereum as a Key Asset, Outpacing ETF Investments

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Ethereum News Update: Major Institutions View Ethereum as a Key Asset, Outpacing ETF Investments

Bitget-RWA2025/11/24 06:14

By:Bitget-RWA

- 68 publicly traded firms now hold 12.7 million ETH, surpassing all Ethereum spot ETFs' 11.3 million holdings as of July 2024. - Firms like Coinbase and Gemini lead corporate accumulation, while banks like Fidelity expand crypto custody services for institutional clients. - Analysts cite regulatory clarity and improved risk frameworks as drivers, with 72% of institutional investors boosting crypto allocations in 2024. - Critics warn of market manipulation risks as corporate holdings now control 54% of ins

The influence of corporations over

Ethereum

continues to grow, as 68 publicly listed firms now collectively possess 12.7 million ETH—an amount that exceeds the combined assets of all Ethereum spot ETFs,

based on a recent analysis

. This development highlights a rising movement where companies are increasingly viewing digital assets as part of their strategic portfolios, using them to diversify holdings and protect against fluctuations in conventional markets

as studies indicate

Recent figures point to a significant uptick in Ethereum accumulation by corporations over the last year, with participants spanning industries from financial technology to online retail

according to statistics

. Leading the way are organizations like

Coinbase Global Inc.

(NASDAQ: COIN) and Gemini Exchange, with

Coinbase alone controlling more than 2.1 million ETH

as of the second quarter of 2024. At the same time, established financial giants such as Fidelity Investments and BNY Mellon have broadened their crypto custody offerings, allowing clients to invest in Ethereum alongside traditional assets like gold and government bonds

according to financial disclosures

Experts link this rapid growth to clearer regulations and enhanced risk management systems. "Businesses are now approaching crypto as they would any other investment category," explained Sarah Kellner, a digital asset strategist at

JPMorgan Chase

as stated in a recent publication

. "The necessary institutional infrastructure is finally aligning with the market's potential." BlackRock echoed this view in a recent analysis,

reporting that 72% of institutional investors raised their crypto exposure in 2024

, with Ethereum being the top choice due to its technological upgrades and deflationary design.

This trend has surpassed projections for Ethereum spot ETFs, which

together hold around 11.3 million ETH

as of July 2024. While ETFs still serve as a vital entry point for individual investors,

direct corporate ownership now represents 54%

of all ETH managed by institutions. This shift has fueled discussions about market influence and liquidity, with some critics cautioning that concentrated holdings could lead to price swings if major players coordinate large transactions.

Regulatory bodies are keeping a close watch on these developments. The U.S. Securities and Exchange Commission (SEC) has called for more detailed reporting from firms with substantial crypto assets, emphasizing oversight of governance and resilience measures. "Openness is essential for upholding the integrity of the market," SEC Chair Gary Gensler remarked in a recent address.

As corporate involvement in Ethereum continues to expand,

the latest data makes it evident

: companies are now active participants in the ongoing transformation of the crypto sector.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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