Ethereum Treasury Companies Overtake ETFs in ETH Holdings
Digital asset treasury companies have overtaken US spot exchange-traded funds as the largest institutional holders of Ether, reflecting a shift toward corporate balance-sheet accumulation even as ETF holdings declined during the first half of 2026.
Summary:
- DAT companies increased their holdings from 6 million to 7.7 million ETH.
- Spot ETF balances fell from more than 6 million to around 5.2 million ETH.
- The two groups jointly control close to 11% of circulating ETH.
- BitMine alone holds nearly 5% of Ethereum’s total supply.
Corporate Ethereum reserves increased by approximately 27% between January and July, according to Binance Research. Over the same period, the amount held by spot ETFs declined, allowing treasury companies to establish a lead of roughly 2.5 million ETH as of July 1.
The trend suggests that public companies are becoming a more important source of structural demand for Ether. Unlike ETF investors, who can redeem shares and indirectly trigger asset sales, treasury companies generally present their ETH purchases as long-term balance-sheet strategies.
BitMine drives corporate ETH accumulation
BitMine Immersion Technologies has become the dominant participant in the Ethereum treasury market, building a position that is considerably larger than those of its corporate peers.
The company held 5.67 million ETH as of June 21, equivalent to 4.7% of Ethereum’s reported 120.7 million-token supply. Its portfolio also included 205 Bitcoin, $601 million in cash and marketable securities, and investments in other companies.
BitMine calls its strategy the “Alchemy of 5%,” reflecting its stated objective of accumulating 5% of the entire ETH supply. Its investor materials now describe the company as the world’s largest Ethereum treasury.
The scale of the position means that BitMine accounts for most of the ETH held by the corporate treasury sector. Based on Binance Research’s total of 7.7 million ETH, the company represented close to three-quarters of all DAT holdings around the end of June.
BitMine has also placed a large share of its reserves into staking. It reported 4.88 million staked ETH as of June 28, with projected annualized staking revenue of approximately $246 million based on a seven-day yield of 2.75%.
Staking changes the economics of a corporate Ethereum treasury. A company holding unstaked ETH depends primarily on price appreciation, while a staked position can generate additional ETH through validator rewards. That yield can help offset operating expenses, although it also introduces validator, liquidity and smart-contract risks depending on how the assets are deployed.
Why companies are accumulating ETH directly
An Ethereum treasury company can use equity, debt or other financing instruments to raise capital and purchase ETH. Management may then hold the asset, stake it or deploy part of the position across blockchain-based financial markets.
The model resembles the corporate Bitcoin strategy popularized by Strategy, but Ethereum introduces an additional income component because ETH can be staked.
Several factors make direct corporate holdings distinct from ETF exposure:
- Treasury companies can stake ETH: US spot Ether ETFs have faced restrictions around staking, while corporate holders can potentially earn protocol rewards from their assets.
- Companies can raise new capital: A DAT trading above the net value of its crypto holdings may issue shares and use the proceeds to acquire more ETH.
- Purchases can be long term: Treasury strategies are generally presented as multi-year commitments rather than short-term allocations.
- Investors assume corporate risk: Shareholders gain exposure not only to ETH but also to management decisions, financing costs, dilution and the company’s capital structure.
The model can become self-reinforcing when a treasury company’s shares trade at a premium to the market value of its assets. Issuing shares at that premium can increase the amount of ETH backing each existing share, depending on the purchase price and financing terms.
The process can also reverse. A falling stock price, high debt costs or a discount to net asset value can restrict access to capital and weaken the company’s ability to continue buying ETH.
Spot ETF holdings declined during the first half
While DAT balances climbed steadily, ETH held by spot ETFs fell from slightly above 6 million at the beginning of January to approximately 5.2 million by July 1, Binance Research reported.
The decline does not mean institutional investors have abandoned Ethereum entirely. ETF balances reflect the combined effects of investor subscriptions, redemptions and movements in the underlying funds.
READ MORE: Ethereum Proposal Would Phase Out Validator Issuance as Staking Nears 50%
US spot Ether products continued to record both inflows and outflows after the reporting period. During the week ending August 2, the funds attracted approximately $10 million, led by BlackRock’s ETHA.
A further $27.42 million entered the products during the final trading week of July, showing that demand recovered modestly after the first-half contraction.
ETFs and DAT companies nevertheless serve different investor groups. Spot funds provide regulated ETH exposure through conventional brokerage and retirement accounts, without requiring investors to manage wallets or private keys. Treasury companies offer a more active and potentially leveraged form of exposure that depends on corporate execution as well as the price of ETH.
Nearly 11% of ETH is concentrated in two institutional channels
The combined 12.9 million ETH held by ETFs and DAT companies represented close to 11% of circulating supply on July 1, according to Binance Research.
This concentration has several practical implications for the Ethereum market.
Long-term corporate accumulation can reduce the quantity of ETH readily available for trading, particularly when holdings are moved into staking. A lower liquid supply could amplify price movements when demand changes, although it does not guarantee higher prices.
Large positions also create concentration risk. BitMine’s holdings alone approach 5% of supply, meaning decisions by a single listed company can influence staking flows, market liquidity and perceptions of institutional demand.
ETF ownership is distributed across several regulated funds, but their assets are commonly held through a smaller number of custodians. DAT holdings may be similarly concentrated among corporate treasuries, staking providers and custody platforms.
The distinction matters because Ethereum was designed as a decentralized network. Institutional adoption can deepen liquidity and broaden access, but a growing share of supply under the control of a limited number of companies may increase dependence on centralized decision-makers.
Treasury demand changes the institutional ETH market
The first-half data show that direct corporate accumulation became a stronger source of demand than spot ETFs during a weak market environment. DAT holdings rose even as ETF balances contracted and ETH traded well below its previous highs.
That divergence may reflect the different time horizons of the two groups. ETF flows respond relatively quickly to investor sentiment, while companies pursuing treasury strategies may continue accumulating through declining markets if financing remains available.
The durability of the trend will depend on more than the price of ETH. Investors will need to monitor whether treasury companies can keep raising capital without excessive dilution, whether staking income remains attractive and whether their shares continue to trade at valuations that support additional purchases.
DAT companies have overtaken ETFs in absolute ETH holdings, but the model has not yet been tested through a prolonged combination of falling crypto prices, weak equity valuations and tighter financing conditions.
The rise of Ethereum treasuries therefore represents a meaningful shift in institutional ownership rather than a straightforward bullish signal. It creates a potentially persistent source of demand, while also concentrating a growing share of ETH within companies whose strategies depend on capital markets and corporate management.
Cover image alt text: Chart showing Ethereum treasury companies overtaking spot ETFs in total ETH holdings.
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Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
