Ethereum Institutional Demand Plummets as Digital Asset Treasury Inflows Hit Multi-Year Low
The institutional appetite for Ethereum (ETH) has experienced a dramatic contraction, with recent market intelligence revealing a significant downturn in purchases. Data indicates that publicly traded Digital Asset Treasuries (DATs), a key demand driver for ETH, reduced their acquisitions to just 370,000 ETH in November. This figure represents a staggering 81% decline from the peak observed in August.
This sharp reduction is particularly noteworthy given that DATs have been a dominant force in the Ethereum market throughout the year, frequently absorbing more tokens monthly than the network’s issuance.
Digital Asset Treasury Buying Power Weakens
Analysis by Bitwise, shared by prominent analyst Max Shannon, illustrates a consistent downward trend in monthly ETH accumulation by DATs from July through November 2025. The data paints a clear picture of diminishing institutional engagement:
- August: 1.9 million ETH acquired
- September: 1.06 million ETH acquired
- October: 670,000 ETH acquired
- November: 370,000 ETH acquired
Experts attribute this decline primarily to a challenging and uncertain market environment. Shannon notes that the “treasury model,” once considered a successor to the speculative “altcoin season,” is rapidly losing its impetus.
A critical factor contributing to this erosion of buying power is the decreasing market value of these companies’ holdings, often referred to as mNAV. This creates a challenging feedback loop:
Falling cryptocurrency prices directly impact the value of DAT holdings, subsequently making it more difficult for these entities to raise new capital for further asset acquisitions. This, in turn, can exert additional downward pressure on market prices, perpetuating the cycle.
Further evidence of this systemic pressure emerged with the indefinite shelving of a planned $500 million Ethereum DAT venture. Spearheaded by significant figures in the Chinese crypto space, including Huobi founder Leon Li Lin, the project was paused due to prevailing poor market conditions and an ambiguous macroeconomic outlook.
Select Entities Continue to Accumulate ETH
Despite the broader institutional retreat, not all major players are disengaging. According to Lookonchain, Tom Lee’s Bitmine recently acquired an additional 18,345 ETH, valued at approximately $55 million. This latest purchase significantly bolsters the company’s already substantial Ethereum position, which now stands at an impressive 3.7 million ETH.
Overall, CoinGecko’s treasury dashboard reveals that publicly listed firms collectively hold over 5.7 million ETH, with Bitmine alone accounting for more than half of this total.
Historically, DATs have been viewed as a crucial structural force, consistently absorbing supply and providing robust, long-term demand for Ethereum. Between July and November, these treasuries collectively accumulated over 4 million ETH, even as the network’s monthly issuance remained near zero.
Implications of the Shifting Institutional Landscape
While the recent slowdown does not negate the substantial impact DATs have had on Ethereum’s market dynamics, it undeniably signals a pivotal shift. The aggressive accumulation witnessed during mid-2025 is no longer being matched by current institutional appetite.
This evolving landscape suggests a potential turning point where the consistent, large-scale absorption of ETH supply by these institutional entities may no longer be as pronounced, prompting a re-evaluation of future demand projections for the leading smart contract platform.
Conclusion
The significant 81% collapse in institutional Ethereum buying, driven by a sharp decline in Digital Asset Treasury inflows, marks a critical development in the cryptocurrency market. While a few key players like Bitmine continue to accumulate, the broader trend indicates a challenging environment for institutional capital. This shift necessitates a careful assessment of Ethereum’s demand dynamics moving forward, as the robust
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