Ethereum Strategic Reserves Surge 119% as Institutions Embrace ETH

Ethereum is entering a new phase in its evolution, transitioning from being primarily a smart contract platform to becoming a strategic reserve asset. According to a recent report, institutions now hold over 1.19 million ETH, which represents more than 1% of Ethereum’s total circulating supply. This development marks a significant shift in how ETH is perceived by major financial and technological players, who are increasingly viewing it as a preferred asset for corporate treasuries, decentralized autonomous organizations (DAOs), and sovereign entities.

The Ethereum Foundation leads the pack with holdings between 259,000 and 269,000 ETH. Following closely are SharpLink Gaming with 176,000 ETH (majority staked), PulseChain, Coinbase with approximately 137,000 ETH, the Golem Foundation with 101,000 ETH, and the U.S. Government with nearly 60,000 ETH (mostly from seizures). These five entities alone control over 70% of all ETH strategic reserves, defined by long-term institutional holdings and staked assets.

The surge in strategic reserves coincides with rising staking levels. Over 35 million ETH, or 28% of the total supply, is now staked. This significantly reduces the liquid supply of Ethereum available for trading or short-term speculation. Analysts argue that ETH is entering a supply squeeze scenario, where increasing amounts of ETH are locked in smart contracts, staking validators, and treasuries, creating upward pressure on prices when demand resurges.

There are several reasons why institutions are turning to Ethereum. Ethereum’s transition to proof-of-stake (PoS) and robust network security make it appealing for long-term holdings. ETH not only stores value but also generates yield through staking, unlike most corporate treasury assets. Additionally, as real-world assets (RWAs) and financial products become tokenized, ETH becomes the underlying gas for future finance. A report projects that strategic ETH reserves could exceed 10 million ETH by mid-2026, driven by DAOs, corporations, and cross-chain ecosystem funds.

Supporting this trend is the on-chain rise of long-term holders. Data shows that 22.8 million addresses are holding ETH without moving it, indicative of strong conviction among both institutions and retail investors. These “hodlers” are reinforcing ETH’s resilience against short-term volatility.

While the crypto market has faced short-term turbulence, Ethereum’s long-term picture looks fundamentally strong. With rising strategic reserves, declining available supply, and growing institutional demand, ETH is well-positioned for a revaluation. This supply-side constraint is particularly powerful, as ETH’s utility and staking mechanics lock coins in productive systems, creating scarcity with yield. As more treasuries treat ETH as a programmable treasury asset, Ethereum could lead the next wave of institutional crypto integration.

Ethereum’s ascent as a strategic reserve signals a deeper narrative shift. It is no longer just a DeFi engine or NFT playground. It is evolving into a global digital reserve asset, sought after by treasuries, sovereigns, and financial institutions. With projections hinting at exponential growth in corporate holdings, ETH’s future may lie in becoming a backbone of digital finance infrastructure, not just for crypto natives, but for the entire global economy.