Ethereum News: Ethereum Exchange Supply Falls to 9-Year Low as Institutions Accelerate Accumulation

Key Takeaways:Ethereum balances on centralized exchanges have dropped to 14.8 million ETH, the lowest since 2016.Institutional demand is surging, with treasuries and U.S. spot ETH ETFs now holding nearly 10% of total supply.Net outflows from exchanges topped 2.18 million ETH in a single day, one of the highest levels in the past decade.Analysts describe Ethereum’s surge in institutional adoption as a “Wall Street glow-up.”Ethereum’s exchange supply has dropped to a nine-year low, signaling accelerating accumulation by institutions and reduced liquidity on trading platforms. According to Glassnode, centralized exchange balances now stand at just 14.8 million ETH, the lowest level since July 2016.The decline has been ongoing since mid-2020, but outflows accelerated sharply in mid-July 2025, with balances falling 20% since then as digital asset treasuries and spot exchange-traded funds (ETFs) ramped up buying.Data from CryptoQuant shows the Ethereum exchange supply ratio at 0.14, also its lowest since 2016. The 30-day moving average of exchange net flows hit its highest withdrawal level since 2022, highlighting a surge in tokens moving to cold storage, staking, or DeFi.Glassnode reported that the exchange net position change was -2.18 million ETH on Wednesday, a level surpassed only five times in the past decade.Institutional Buyers Lead ETH ExodusInstitutional demand is driving the shift. Since April, 68 entities have accumulated 5.26 million ETH (worth roughly $21.7 billion), according to StrategicEthReserve. Most are staking ETH rather than keeping it on exchanges.Meanwhile, U.S. spot ETH ETFs now hold 6.75 million ETH (about $28 billion), representing 5.6% of total supply. Combined with treasury holdings, nearly 10% of all ETH in existence is now controlled by institutional players.Analysts Call It a “Wall Street Glow-Up”BTC Markets analyst Rachael Lucas described the trend as Ethereum’s “Wall Street glow-up,” noting that treasuries are stacking ETH while exchange supply sinks to multi-year lows.Despite the bullish accumulation, ETH prices have pulled back 11% this week, dipping below $4,100 on Thursday. Still, some analysts, including Tom Lee, maintain year-end targets between $10,000 and $15,000.