Ether Machine Acquires Significant Amount of Ethereum, Now Ranked Third among Largest Holders, With a Value of $56.9 Million in Purchased ETH
In the rapidly evolving world of cryptocurrency, a significant shift is underway as corporate treasuries increasingly turn to direct holdings of Ethereum (ETH). This trend, driven by ETH's staking yields, programmability, and ecosystem utility, positions Ethereum not just as a digital asset but as a hybrid between tech equity and digital currency appealing to treasury strategists.
Several corporates have jumped on the bandwagon, with Bit Digital transitioning its entire treasury from Bitcoin to Ethereum, accumulating over 100,000 ETH following a $172 million equity raise and Bitcoin sales. Other firms such as SharpLink Gaming and BitMine also hold large Ethereum portfolios valued in the hundreds of millions, reflecting growing confidence in Ethereum as a treasury asset.
The Ether Machine, one of the largest holders of Ethereum, plans to list on the NASDAQ in Q4. Funded by startup capital from Andrew Keys, the former head of business development for crypto software giant ConsenSys, the Ether Machine now holds $1.28 billion worth of Ethereum. The Ether Machine's strategic move to grow its Ethereum holdings via staking and DeFi has propelled it to overtake the Ethereum Foundation itself in Ethereum holdings.
The data analysis provided by CEX.io reveals an interesting development. As of July 2025, corporate treasuries like The Ether Machine hold $6.2 billion worth of Ethereum, compared to $21.4 billion held by ETFs. This shift from ETFs to corporate treasuries has significantly decreased the ratio of Ethereum held by ETFs to corporate treasuries from over 100 to 1 at the start of 2025 to less than 4 to 1 by July 2025.
The potential limitations of holding Ethereum via ETFs may contribute to this shift towards corporate treasuries. Holding Ethereum directly enables companies to earn rewards and actively engage with the network, rather than passively holding ETF shares. The CEX.io spokesperson attributes this shift to a deeper shift toward native, utility-driven adoption of Ethereum.
While ETF investment in Ethereum remains popular among retail and institutional investors seeking regulated, liquid exposure, the rapid growth of direct corporate treasury investment emphasizes ETH’s evolving role beyond a mere asset class to a functional business capital resource accurately reflected in recent institutional inflows and strategic positioning.
In summary, the trend favors increasing direct Ethereum adoption by corporate treasuries over passive ETF holdings due to ETH’s unique combination of yield generation, real-world utility, and growing ecosystem dominance within institutional finance. This shift could potentially limit the growth of Ethereum holdings via ETFs, as more corporations seek to leverage Ethereum's potential for staking yields and network engagement.
- As corporate treasuries embrace Ethereum (ETH), they are shifting their focus from investing in crypto exchange-traded funds (ETFs) to direct holdings of ETH.
- The Ether Machine, a major Ethereum holder, plans to list on NASDAQ and currently holds $1.28 billion worth of Ethereum, surpassing the Ethereum Foundation in Ethereum holdings.
- The shift in Ethereum holdings from ETFs to corporate treasuries, as observed by CEX.io, has drastically reduced the ratio of Ethereum held by ETFs to corporate treasuries.
- Direct holding of Ethereum offer benefits that passive ETF holding does not, such as earning rewards and actively engaging with the network.
- The potential limitations of holding Ethereum via ETFs could lead to a growth limit in Ethereum holdings via ETFs, as more corporations seek direct investments in Ethereum for staking yields and network engagement.
- The trend of increasing direct Ethereum (ETH) adoption by corporate treasuries is driven by ETH's unique characteristics, including yield generation, real-world utility, and growing ecosystem dominance within institutional finance.
