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Vitalik Buterin says Ethereum treasury is ‘good’ but THIS risk remains
Ethereum co-founder Vitalik Buterin has weighed in on the growing Ethereum treasury trend, stating that it’s a “good” and “valuable” development for the asset. However, he also cautioned about an underlying risk that could potentially undermine the entire system.
Buterin’s remarks come as ETH treasury holdings have reached a staggering $11 billion, with over 60 players having acquired 3 million ETH, valued at approximately $11.8 billion. This represents a significant 2.5% of the total supply. The largest holders, Immersion Technologies (BMNR) and SharpLinK Gaming (SBET), hold substantial amounts of Ether, with BMNR controlling an astonishing 833.1K ETH worth $3.26 billion.
The Ethereum founder’s sentiments align with recent observations from Standard Chartered, which noted that treasury stocks are a more attractive investment option compared to ETFs. This is due to the exposure they offer to staking rewards and yields.
On the flip side, mNAV (market price to net asset value) has dropped for most firms, indicating fair value and discounted buying opportunities for investors. This is not entirely unexpected, given that the market’s sentiment has shifted since the recent ETH price rally.
While it’s true that Vitalik Buterin sees the Ethereum treasury trend as a positive development, he did voice some concerns about excessive debt leverage posing an existential risk to the system. It seems his concern lies in the potential for treasuries to turn into an “overleveraged game,” which could negatively impact ETH’s value.
Buterin’s remarks come at a time when selling pressure on exchanges has increased, with profit-taking accelerating as Ethereum approaches $4K once again. This marks a stark contrast to last week’s rally, which was characterized by muted exchange inflow.
The growing trend of Ethereum treasuries has been one of the most significant narratives in 2025, providing a lifeline for the asset after a difficult 2024 and Q1 2025.
Source: ambcrypto.com
