Ethereum News Today: Vitalik Buterin Backs Ethereum Treasuries as Market Surpasses $11.77 Billion

Vitalik Buterin, co-founder of Ethereum, has publicly shifted his stance on companies holding Ethereum as a treasury asset through specialized crypto treasury firms. In recent comments, Buterin expressed support for the growing trend of corporations allocating ETH to their balance sheets, noting that it enhances network participation and offers diversified investment opportunities for both retail and institutional investors [1]. This marks a significant departure from his earlier skepticism of similar strategies involving Bitcoin. Last year, he criticized the Bitcoin hoarding approach taken by figures such as Michael Saylor, calling it misaligned with the ethos of cryptocurrency [2].

Buterin’s evolving perspective reflects broader adoption of Ethereum in institutional settings. The Ethereum treasury market has now surpassed $11.77 billion in total value, signaling increased confidence among corporate and institutional investors [2]. His support is framed within a broader acceptance of Ethereum’s role in traditional finance, provided it is approached with caution and responsible risk management.

Despite his endorsement, Buterin has underscored the dangers of overleveraging ETH holdings. He warned that excessive exposure or the use of ETH as collateral without accounting for market volatility could destabilize both the asset and the companies that hold it [3]. This caution is particularly relevant as some public companies have raised substantial capital to build Ethereum treasuries, a move that could heighten systemic risks if not managed prudently [3].

Buterin emphasized that while Ethereum treasuries offer new investment avenues, they must be treated with the same level of care as traditional financial instruments. He echoed concerns from industry observers about the potential for rapid liquidation in the event of a sharp price drop, especially for entities with leveraged positions in ETH [4]. His remarks highlight a nuanced understanding of the dual nature of Ethereum as both a technological innovation and a volatile asset class.

This shift in Buterin’s position also coincides with a broader rise in Ethereum activity, including record transaction volumes and increased staking interest [5]. These trends reinforce the growing relevance of Ethereum in the global financial ecosystem and suggest a continued expansion of its utility in both traditional and digital markets.

Buterin’s comments reflect a balanced view—acknowledging the benefits of Ethereum’s integration into corporate treasuries while highlighting the need for caution. As more companies explore Ethereum as a treasury asset, his insights may shape both market strategies and regulatory discussions in the near future.

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Source:

[1] CoinCentral, [Vitalik Buterin Supports Ethereum Treasury Companies but ...](https://coincentral.com/vitalik-buterin-supports-ethereum-treasury-companies-but-cautions-on-risk/)

[2] AInvest, [Ethereum News Today: Ethereum Treasury Market Surpasses $11.77 Billion...](https://www.ainvest.com/news/ethereum-news-today-ethereum-treasury-market-surpasses-11-77-billion-buterin-issues-leverage-warnings-2508/)

[3] BeInCrypto, [Vitalik Buterin Reveals What Could Go Wrong as ...](https://beincrypto.com/ethereum-treasury-risks/)

[4] Cryptonews, [Ethereum Breaks $3900 as ETH Treasury Demand Heats Up](https://cryptonews.com/news/ethereum-eyes-4000-as-eth-treasury-demand-heats/)

[5] Yahoo Finance, [Ethereum Transactions Hit Record High as Staking, SEC...](https://uk.finance.yahoo.com/news/ethereum-transactions-hit-record-high-073048823.html)