Why Institutions Are Still Hesitant About Ethereum Treasury Strategies — For Now

In recent months, Ethereum treasury strategies have gained momentum, with companies raising funds, purchasing ETH, and banking on a boost to their stock prices. But despite the growing trend, institutional investors are still watching from the sidelines.

Cautious Optimism or Missed Opportunity?

According to Matthew Sigel, head of digital assets at VanEck, institutions haven’t fully embraced the concept — yet. “Not right now, but that might be where the real opportunity lies,” he remarked in a recent appearance on The Mining Pod.

This approach mirrors the early moves of firms like MicroStrategy, which made headlines for its massive Bitcoin acquisitions. Now, that strategy is being replicated with Ethereum and other digital assets.

A Bold Bet: SharpLink Gaming

One of the most aggressive adopters of the Ethereum treasury model is SharpLink Gaming, an online casino firm. The company has accumulated over $1.3 billion in ETH, reportedly purchasing tens of millions in Ether on a daily basis. The strategy is being guided by Joe Lubin, co-founder of Ethereum and CEO of Consensys, who recently took over as SharpLink’s chairman.

SharpLink isn’t alone. Companies like BitMine Immersion Technologies, a former Bitcoin mining operation turned Ethereum treasury player, have also made headlines. Both firms are now trading at valuations nearly double the worth of their Ether holdings.

Growing Trend, But With Institutional Caution

Over 60 companies now hold ETH as part of their reserves, collectively owning around 1.8 million Ether, worth approximately $6.2 billion. While this still trails behind the 157 firms holding Bitcoin, the pace of adoption is accelerating.

Matt Hougan, CIO at Bitwise, points out that this rapid accumulation is creating a supply-demand imbalance in the market. In a note dated July 22, he highlighted that since mid-May, exchange-traded products and listed companies have purchased 2.83 million ETH—which is 32 times more than the newly minted supply over the same period.

This squeeze has helped fuel a 60% price surge, with Ethereum now trading near $3,600.

Why Ethereum Is Gaining Corporate Appeal

Ethereum treasury strategies are gaining traction for two main reasons: market opportunity and yield potential.

The ETH treasury landscape is far less saturated than its Bitcoin counterpart. “It’s not as crowded,” Sigel explained, suggesting this could appeal to companies looking for an edge.

Furthermore, Ethereum offers utility beyond simply holding value. According to Jeff Park, Head of Alpha Strategies at Bitwise, Ethereum provides yield—something institutional investors understand and value. “Bitcoin is digital gold,” he said during a July 8 podcast interview. “Ethereum, on the other hand, is productive—it generates returns.”

Not Without Risks

Despite the bullish case, skeptics are raising concerns. Many of the red flags that once surrounded Bitcoin treasury plays—such as speculative valuations, insider incentives, and narrative-driven markets—are now surfacing around Ethereum strategies as well.

Analysts are wary that these moves could be more about hype than fundamentals, especially given the “promote-heavy” structures and lack of clear regulatory frameworks.

Innovation or Speculation?

With Ethereum prices climbing and treasury strategies gaining visibility, a tipping point may be near. But whether these plays represent genuine financial innovation or just another speculative bubble in corporate form remains an open question.