Ethereum News Today: Ethereum Treasury Growth Spikes 160% as Buterin Warns of Leverage Risks

Ethereum co-founder Vitalik Buterin has voiced support for the growing trend of public firms holding Ether (ETH) in their corporate treasuries, highlighting the benefits of expanded accessibility and broader investor participation [1]. During a recent appearance on the Bankless podcast, he emphasized that these structures allow investors—particularly those with limited capital—to gain exposure to Ethereum without directly owning the asset [2]. This trend, Buterin argued, is a positive development for the Ethereum ecosystem, fostering inclusivity and financial innovation [3].

However, Buterin also underscored the potential risks associated with this growing trend. He warned that excessive leverage could trigger a dangerous feedback loop, where falling ETH prices lead to forced liquidations, accelerating further price declines and undermining market confidence [4]. While he noted that the current Ethereum community is more financially disciplined than in the speculative days of projects like Terra, he stressed that caution remains essential [5]. “If you woke me up three years from now and told me that treasuries led to the downfall of ETH, my guess would be that somehow they turned it into an overleveraged game,” he remarked [6].

The ETH treasury market has already grown significantly, with total holdings reaching approximately $11.77 billion [7]. Among the largest holders are BitMine Immersion Technologies, which controls over 833,000 ETH valued at more than $3.2 billion, followed by SharpLink Gaming with $2 billion in ETH and The Ether Machine holding $1.34 billion [8]. These firms, which function similarly to crypto ETFs, are helping to bridge the gap between traditional finance and the crypto market, offering exposure to both retail and institutional investors [9].

The trend has coincided with a significant price rally for ETH, which has surged more than 160% from April lows to nearly $3,870 [10]. Analysts suggest that treasury accumulation is one factor contributing to Ethereum’s improved performance relative to Bitcoin and Solana, two key assets in the current bull cycle [11]. As the trend continues to gain momentum, the market remains keenly focused on its long-term sustainability and potential risks.

Buterin’s remarks highlight the growing intersection between institutional finance and the crypto space. While he acknowledges the benefits of corporate ETH holdings, he also cautions against overreliance on leveraged structures and calls for responsible financial management [12]. His comments reflect a broader industry debate about how to balance innovation with risk control as Ethereum solidifies its position in the global digital asset landscape [13].

Source:

[1] Vitalik Buterin Backs Ethereum Treasury Firms but Flags Potential Dangers (https://coindoo.com/vitalik-buterin-backs-ethereum-treasury-firms-but-flags-potential-dangers/)

[2] Vitalik Buterin Warns: ETH Treasuries Could Backfire with ... (https://www.cryptotimes.io/2025/08/08/vitalik-buterin-warns-eth-treasuries-could-backfire-with-leverage/)

[3] Daily Summary of Digital Currency Dynamics (2025-08-08) (https://news.futunn.com/en/post/60307544/daily-summary-of-digital-currency-dynamics-2025-08-08)