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**Ethereum Exchange Balances Plunge to Nine-Year Low as Institutional Demand Soars**

**[City, Date]** – Ethereum (ETH) holdings on centralized exchanges have plummeted to levels not seen since 2016, driven by a surge in institutional accumulation, according to recent data from Glassnode and CryptoQuant. Exchange balances have been steadily declining since mid-2020, with a significant acceleration occurring in recent months.

As of Thursday, exchange balances hit a low of 14.8 million ETH. This decline is largely attributed to increased buying activity from digital asset treasury firms and the growing popularity of U.S. spot Ethereum exchange-traded funds (ETFs).

“Large-scale withdrawals often indicate a shift toward self-custody or DeFi deployments, reducing exchange liquidity and immediate selling pressure,” commented CryptoQuant author CryptoOnchain. The 30-day moving average of total Ethereum exchange net flows reached its highest level since late 2022 this week, indicating an acceleration in flows.

Data from StrategicEthReserve reveals that approximately 68 entities have acquired 5.26 million ETH (worth around $21.7 billion) since April, representing 4.3% of the entire ETH supply. A significant portion of these holdings is being staked for additional yield rather than held on exchanges.

U.S. spot Ether ETFs have also played a major role, currently holding 6.75 million ETH (worth almost $28 billion), which equates to 5.6% of the total supply.

This collective buying spree means approximately 10% of all ETH in existence has shifted into the hands of institutional entities in recent months. Tom Lee-chaired BitMine, for instance, now controls over 2% of the total ETH supply.

BTC Markets analyst Rachael Lucas remarked on social media platform X that Ethereum was getting “the Wall Street glow-up.”

Despite this institutional interest, the price of Ether has recently retreated, falling over 11% in the past week to below $4,100 on Thursday morning. However, the trend of decreasing exchange balances suggests a long-term bullish outlook for the cryptocurrency as supply tightens.

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