Ethereum (ETH) Price: Why Institutions Are Locking Up Billions in Staking

TLDR

• BitMine deposited 186,336 ETH worth $605 million, bringing total staked holdings to 779,488 ETH valued at $2.5 billion
• Ethereum validator exit queue dropped to 32 ETH with one-minute wait time, down 99.9% since mid-September 2024
• Staking entry queue grew to 1.3 million ETH, the highest level since mid-November 2024
• U.S. spot Ethereum ETFs recorded $113.64 million net inflow on January 6, marking three consecutive days of positive flows
• BlackRock’s ETHA led with $197.7 million in inflows while Grayscale funds saw $85.45 million in combined outflows

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Ethereum staking activity increased as institutional investors moved large amounts of ETH into the network. BitMine, the largest Ethereum treasury company, deposited 186,336 ETH worth approximately $605 million in recent transactions. The deposits were confirmed through on-chain validator activity tracked by Arkham Intelligence.

Ethereum (ETH) Price

The new deposits brought BitMine’s total staked holdings to 779,488 ETH. At current market prices, this represents over $2.5 billion locked in the Ethereum consensus system. Staked ETH does not trade on exchanges but earns protocol-level rewards.

BitMine started expanding its staking operations on December 26. The company first deposited 82,560 ETH worth nearly $260 million. This marked the beginning of an accelerated accumulation period.

As of press time, ETH traded at $3,215, up 0.37% over the past day. Trading volume increased by 20.78% to $28.68 billion.

The validator queue dynamics shifted as more holders committed to staking. According to beaconcha.in data, the exit queue dropped to 32 ETH. Wait time stood at approximately one minute.

This level represents a 99.9% decrease since mid-September 2024. At that time, over 2.67 million ETH was queued for withdrawal. The decline shows fewer stakers want to leave the network.

Staking Queue Demand Shifts Direction

The staking entry queue grew to nearly 1.3 million ETH. This marked the highest figure since mid-November 2024. The data shows renewed interest from holders seeking yield through staking.

Rostyk, chief technology officer at Asymetrix, described the exit queue as “basically empty” in an X post. He noted that only a small proportion of validators appeared willing to withdraw. His observations matched the on-chain data.

Staked ETH does not circulate in the market. This reduces available supply on exchanges. The shift from trading to staking reflects changing holder behavior.

ETF Inflows Add Institutional Pressure

U.S. spot Ethereum ETFs recorded $113.64 million in net inflows on January 6. This marked the third consecutive day of positive flows according to data from Trader T.

BlackRock’s iShares Ethereum Trust attracted $197.7 million. Fidelity’s Ethereum Fund saw a $1.62 million outflow. Bitwise and 21Shares products recorded modest inflows of $1.39 million and $1.62 million respectively.

Grayscale products experienced outflows. Grayscale Ethereum Trust lost $53 million while Grayscale Mini ETH shed $32.45 million.

U.S. spot Ethereum ETFs collectively hold approximately 2.8 million ETH. This represents about 2.3% of Ethereum’s circulating supply.

Grayscale became the first to distribute staking rewards from a U.S.-traded crypto exchange-traded product. The payout came from the Grayscale Ethereum Trust ETF. This created a new way for institutions to gain staking exposure through regulated products.

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