According to Glassnode, Ethereum reserves on centralized exchanges have dropped to their lowest level since 2016.
This marks a 50% reduction in exchange-held Ether over the past two years, with a sharp 20% decline since mid-July as institutional buying intensifies.
CryptoQuant’s Ethereum exchange supply ratio, which divides exchange reserves by total supply, hit a low of 0.14, a level not seen since July 2016.
Declining exchange balances typically signal that investors are moving $ETH into cold storage, staking, or DeFi protocols for higher yields, while rising balances often indicate selling pressure.
Surge in $ETH Withdrawals
CryptoQuant data shows the 30-day moving average of Ethereum exchange net flows reached its highest level since late 2022, reflecting significant withdrawals.
“Large-scale outflows suggest a shift to self-custody or DeFi, reducing exchange liquidity and selling pressure,” said CryptoQuant analyst CryptoOnchain.
Glassnode reported a net position change of negative 2.18 million $ETH on Wednesday, one of the largest outflows in the past decade.
Institutional Accumulation Drives Trend
Since June, corporate Ether treasuries, such as BitMine led by Tom Lee, have been aggressively accumulating $ETH, with BitMine alone holding over 2% of the total supply.
StrategicEthReserve data indicates that 68 entities have acquired 5.26 million ETH, worth $21.7 billion, or 4.3% of the total supply since April.
Most of these assets are being staked for additional yields rather than held on exchanges.
US spot Ether ETFs have also seen strong inflows, now holding 6.75 million $ETH valued at nearly $28 billion, representing 5.6% of the total supply.
Combined, institutional entities control roughly 10% of all $ETH, with accumulation accelerating in recent months.
Analyst Highlights “Wall Street Glow-Up”
BTC Markets analyst Rachael Lucas described Ethereum’s institutional surge as a “Wall Street glow-up” on X.
Despite this optimism, $ETH prices have dipped 11% over the past week, falling below $4,000 on Thursday.
