Ethereum News Today: Institutions Double Down as Ethereum Slides

Ethereum (ETH) fell below $3,500 on Tuesday, marking its second consecutive day of declines amid persistently weak institutional and retail demand. The price drop coincided with broader macroeconomic uncertainty, including the record-breaking U.S. government shutdown, which has exacerbated investor caution. Over the past two weeks, Ethereum ETFs recorded zero inflows, underscoring the lack of conviction among institutional investors. Meanwhile, retail demand remains subdued following the October 10 deleveraging event, which liquidated over $19 billion in crypto assets.

The bearish sentiment is compounded by technical indicators. Ethereum's futures open interest (OI) has declined to $41 billion, down from $46 billion in early November. On Binance, Ethereum's exchange supply ratio stands at 0.0327, the lowest level since May 2024, suggesting coins are moving into cold storage. Analysts at Arab Chain note that this reduction in exchange supply typically signals accumulation phases, which could eventually alleviate market pressure and support price stabilization. However, the immediate outlook remains cautious, with investors bracing for potential choppy sideways action.

Despite the downturn, some players are doubling down on Ethereum. BitMine Immersion Technologies, now the largest Ethereum treasury company, purchased 110,288 ETH last week, a 34% increase from the prior week. The firm's chairman, Tom Lee, argued that Wall Street's growing interest in tokenizing assets on Ethereum's blockchain creates a "super cycle story" for the asset over the next decade. BitMine's ETH holdings are now valued at $12.5 billion, though the price must rise by 180% to meet Lee's $10,000 end-of-2025 target.

Institutional adoption is also gaining momentum. SharpLink Gaming, in partnership with Consensys and EigenCloud, deployed $200 million worth of ETH onto the Linea Layer 2 platform to enhance risk-adjusted yields. The company's CEO highlighted Ethereum's "massive acceleration of institutional adoption", citing regulatory clarity and initiatives like the SEC's Project Crypto and the GENIUS Act. Meanwhile, Ethereum's tokenized asset base has surpassed $200 billion, with protocols like Ondo and Centrifuge offering 4–6% yields on tokenized U.S. Treasuries.

Regulatory uncertainty, however, continues to cloud the market. Two competing Senate drafts aim to resolve the SEC-CFTC jurisdictional battle over crypto oversight. The Agriculture Committee's proposal would expand the CFTC's authority over digital commodities, while the Banking Committee's draft grants the SEC explicit control over "ancillary assets" until projects demonstrate decentralization. These proposals could reshape custody rules, exchange operations, and token classifications, but their implementation remains pending.

The broader crypto market is also seeing significant moves. Grayscale, a leading digital asset manager with $35 billion in AUM, filed for a U.S. IPO. The offering, led by Morgan Stanley and BofA Securities, reflects the sector's push into traditional equity markets. Separately, Capillary Technologies, a SaaS firm, launched its IPO on November 14, aiming to raise ₹877.5 crore to fund cloud infrastructure and R&D.

Ethereum's path forward hinges on balancing short-term bearish pressures with long-term fundamentals. While exchange supply trends and institutional accumulation hint at future resilience, near-term volatility is likely to persist as macroeconomic and regulatory uncertainties unfold.