Exchange Reserves Fall to 3-Year Low as ETFs Attract $13 Billion

TLDR

• Ethereum reserves on exchanges dropped to a 3-year low, with 10.7 million ETH leaving exchanges since 2022
• ETH ETFs have attracted over $13 billion in net inflows since their July 2024 launch
• Public companies like SharpLink Gaming and BitMine are building large ETH treasuries
• Mid-sized holders added around 411,000 ETH, showing renewed investor confidence
• ETH is trading at $4,439.08 with a market cap of $529.30 billion and showing technical signs of a bullish reversal

Ethereum’s supply dynamics are shifting dramatically as the second-largest cryptocurrency sees its exchange reserves plummet to the lowest levels in three years. This change comes as new investment channels emerge and corporate buyers increase their holdings.

Data from CryptoQuant shows that ETH reserves on centralized exchanges have fallen by nearly 10.7 million tokens since September 2022. The decline has accelerated recently, with about 2.5 million ETH leaving exchanges in just the past three months.

Exchange reserves now stand at approximately 17.4 million ETH. This represents a 38% decrease from the 28.8 million peak reached in 2022.

The shrinking available supply coincides with the rise of new investment vehicles. Spot ETH exchange-traded funds, launched in July 2024, have become major players in the market.

These ETFs have attracted over $13 billion in net inflows according to CoinGlass data. Between June and August alone, the funds pulled in more than $10 billion, with a record $5.4 billion coming in July.

Corporate Treasuries Expand

Corporate treasuries have emerged as another major source of demand for Ethereum. Several public companies have announced ETH treasury strategies in recent months.

SharpLink Gaming was among the earliest public companies to pivot its reserves into Ethereum in 2025. Backed by a $425 million private placement, the company has built holdings of 797,704 ETH, worth about $3.5 billion at current prices.

BitMine Immersion Technologies joined the trend in July. The company revealed it had accumulated around 1.86 million ETH, representing roughly 1.5% of the token’s total supply.

A third major player, The Ether Machine, announced in September that it holds 495,000 ETH. The company is also preparing for a Nasdaq listing.

According to Ethereum Treasuries data, 17 publicly traded companies now hold Ethereum on their balance sheets. Together they control more than 3.6 million ETH.

One key appeal of ETH as a reserve asset is its ability to generate yield through staking. Unlike Bitcoin, “ETH is both a macro asset and a productivity asset, generating yield via staking and securing over $100 billion in tokenized assets,” according to a Bitfinex analyst.

Market Signals Turn Positive

The technical picture for Ethereum is also improving. ETH is currently trading at $4,439.08, with a market cap of $529.30 billion and a 24-hour trading volume of $63.71 billion.

The price has increased by 1.52% over the past day. The Relative Strength Index stands at 52.74, suggesting the market is neither overbought nor oversold and has room for growth.

Whale activity data from Glassnode shows changing behavior among large holders. While the largest whales (those holding over 10,000 ETH) have paused their buying after adding about 2.2 million ETH over 30 days, other large holders are stepping in.

Whales holding between 1,000 and 10,000 ETH had been reducing their positions in previous weeks. However, they have now resumed accumulating, adding roughly 411,000 ETH over the past month.

A crypto analyst known as BATMAN notes that ETH is forming a bullish divergence and trading above a large bullish order block. A breakout above the current bearish trendline could trigger further upside in the coming days.

I know I said $ETH should head slightly lower, but here’s another chart telling a different story.

Ethereum is sitting on a strong bullish OB and also forming a bullish divergence. All we need now is a breakout from its bearish trendline to confirm the reversal. pic.twitter.com/aeekkoxbAc

— BATMAN ⚡ (@CryptosBatman) September 3, 2025

BlackRock’s iShares Ethereum ETF (ETHA) has become one of the fastest-growing ETFs on record. It now holds assets worth over $16 billion.

Overall, spot ETH ETFs collectively manage about $24 billion in assets, according to CoinMarketCap data. Several ETF issuers, including BlackRock and Fidelity, have recently moved to add staking features to their Ether funds.

The SEC is expected to rule on these staking features in October, when final application deadlines are due.

On Tuesday, Ethereum’s staking entry queue reached its highest level since 2023. There are now 860,369 ETH worth about $3.7 billion waiting to be staked.