Companies holding Ethereum (ETH) in their cash reserves have been on a major buying spree. In August alone, these firms snapped up 1.6 million ETH. That number is more than triple the 450,000 ETH that have been created since Ethereum’s big upgrade, “The Merge,” in September 2022. When you add in the record amounts pouring into Ethereum exchange-traded funds (ETFs), it’s clear demand is off the charts.
This huge appetite for ETH is making the digital currency’s price jump. Ether, the second-largest cryptocurrency, is seeing unprecedented interest from big companies and financial institutions. They are building up strategic stockpiles and putting lots of money into new Ethereum ETFs in the United States. This strong buying is far outstripping the pace at which new ETH tokens are being created. This supply and demand imbalance is pushing the price of the cryptocurrency way up.
Data from Strategic ETH Reserve shows a clear trend. In August, companies with Ethereum treasury plans added about 1.6 million ETH to their holdings. This is over three times the 450,000 ETH that have entered circulation since “The Merge.” That September 2022 upgrade dramatically changed Ethereum’s network, slowing down how fast new tokens are made.
Companies Stockpiling Ethereum
Right now, 71 companies hold 3.7 million ETH. This makes up about 3% of all Ethereum tokens in existence. This is a huge jump from early April 2025, when fewer than ten companies held just 113,000 ETH.
In August alone, these companies bought about 1.67 million ETH, valued at $7.5 billion. This shows how quickly they are buying up the digital asset. BitMine Immersion Technologies leads the pack, holding 1.2 million ETH. This highlights how serious big institutions are about using Ethereum as a core part of their financial strategy. This quick increase in holdings reflects a growing trust in Ethereum’s long-term value as an asset that’s native to the internet and can earn returns.
Ethereum ETFs Boost Demand
Spot Ethereum ETFs in the U.S. have also become a major source of demand. Record money inflows in recent weeks show how much institutional investors want to buy in.
Since early August 2025, these ETFs have brought in $2.3 billion. That equals about 500,000 ETH. This figure is especially important when you compare it to the total ETH created since “The Merge.” This event, also called “The Fusion,” happened in September 2022. It moved the network to a proof-of-stake (PoS) system.
The fact that ETF inflows in August alone are more than all the ETH created since the network’s algorithm change shows strong investor interest. They want to get exposure to the second-largest cryptocurrency through a standard, regulated investment product. On Monday, Ethereum ETFs had their best day ever. The nine funds took in more than $1 billion combined.
Institutional Demand Outpaces New Supply
The difference between institutional demand and Ethereum’s new supply rate is quite striking. Corporate treasury purchases in August are about 43 times larger than the network’s estimated new supply of 37,000 ETH this month.
When you add ETF inflows to this, the total demand far exceeds the new supply entering the market. Ethereum’s “burning” mechanism also makes this imbalance stronger. Data from Ultrasound Money shows that about 79,840 ETH were created in the last 30 days. During that same time, 5,777 ETH were “burned,” meaning they were permanently removed from circulation.
About 683,000 ETH are burned each year through transaction fees, thanks to the EIP-1559 mechanism. This amounts to about $1.8 billion at today’s prices. This burning can lead to periods where the total supply of ETH actually shrinks when the network is very busy.
Post-Merge Supply and Price Jump
Ethereum’s switch to PoS in 2022, known as “The Merge,” fundamentally changed how new ETH is created. Under the old proof-of-work (PoW) system, Ethereum created about 13,500 ETH daily for miners. After “The Merge,” this number dropped significantly to about 1,700 ETH per day. This means roughly 51,000 ETH are created each month.
This slower rate of new ETH, combined with the burning system, has kept Ethereum’s supply growth close to zero. The total supply has only increased by 0.13% annually since “The Merge.”
This overwhelming demand from institutions and companies has helped Ethereum’s price jump significantly in recent weeks. According to CoinGecko, the price of ETH has gone up more than 30% in the last 30 days. It reached $4,780 on August 14. This rise brought Ethereum closer to its all-time high of $4,900 set in 2021. Analysts say this price surge comes from the tight supply dynamics. Corporate buying, ETF inflows, and a potential increase in stablecoin activity after the recent U.S. GENIUS Act approval all play a part. Analysts at Standard Chartered now believe Ethereum could hit $7,500 by the end of the year. This is driven by continued institutional buying and a possible crunch in supply.
A New Era for Ethereum
The rapid growth of corporate treasury holdings and ETF inflows signals a new era for Ethereum. It is now seen as an asset suitable for major institutions. Currently, 7.98% of all circulating ETH is held by ETFs and corporate treasuries. Projections suggest that corporate treasuries alone could eventually hold up to 10% of the supply. This shows that Ethereum’s market dynamics are shifting in a big way.
Less new ETH being created, significant burning of tokens, and growing adoption by big institutions all position Ethereum as a potential “ultrasound money” asset. Analysts and observers are optimistic. They think ETH could surpass its past highs and reach $5,000 before the end of the year.