ETH on exchanges hits 2016 low as institutions hoard assets

The amount of Ether held on centralized exchanges plunged to its lowest level since 2016 this week, falling to about 14.8 million ETH as institutional buyers and corporate treasuries pulled large sums off trading platforms, data from on-chain analytics firms showed. The shift, which accelerated in mid July, has coincided with heightened volatility in Ether price, including a brief slide below the 4,000 mark that triggered major liquidations among leveraged traders.

Exchange balances of ETH have been shrinking since mid 2020 and were cut roughly in half over the past two years, analysts said. CryptoQuant’s exchange supply ratio stood near 0.14, the lowest since July 2016, while the 30-day moving average of total Ethereum exchange net flows hit its highest level since late 2022, indicating accelerating outflows. Glassnode reported a one-day exchange net position change of negative 2.18 million ETH on Wednesday, a reading exceeded only five times in the past decade.

Corporate treasuries and institutional vehicles have been central to the exodus. StrategicEthReserve data indicate about 68 entities bought roughly 5.26 million ETH since April, representing about 4.3 percent of the...