Institutional money just sent a loud signal: for the first time ever, a larger share of Ethereum’s net supply is held by public digital asset treasuries (DATs) than Bitcoin’s. According to analyst Leon Waidmann, ETH-focused treasury entities now own about 4% of total ETH supply, overtaking BTC at 3.6%. Two months ago, BTC’s DAT share was roughly double ETH’s—this flip marks a swift rotation that traders can’t ignore.

What just happened

Ethereum has overtaken Bitcoin in the percentage of net supply owned by public crypto-treasury companies. Waidmann cites three drivers behind the shift: staking yield, accelerating Layer-2 adoption, and growing tokenization of real-world assets (RWAs). Meanwhile, Solana is gaining institutional mindshare too, with public companies reportedly locking over $4B in SOL across corporate treasuries.

Why this matters to traders

- DATs are a window into how “serious money” allocates. When treasuries rotate, liquidity and narrative often follow. - A rising treasury share can tighten effective float and support relative strength in the underlying asset. - ETH’s yield plus scaling tailwinds create a structurally different demand profile than BTC’s. That can influence the ETH/BTC cross, sector rotations, and funding dynamics. - Multi-chain institutional participation (ETH and SOL) suggests diversification is becoming a boardroom strategy, not just a retail trend.

Key drivers behind the ETH bid

- Staking yield: Native on-chain yield can make ETH a balance-sheet asset with cash-like characteristics compared with non-yielding BTC. - L2 adoption: More throughput, lower fees, and expanding app activity can reinforce ETH’s utility and fee burn dynamics. - RWA tokenization: Institutional workflows (settlement, collateral, issuance) increasingly point to Ethereum rails, deepening long-term demand.

How to trade the shift

• Track treasury disclosures and public wallet transparency to gauge weekly changes in ETH, BTC, and SOL holdings. Rising allocations often precede relative strength.
• Watch the ETH/BTC ratio alongside treasury flow headlines. A sustained uptrend in both can confirm rotation; fading flows can warn of reversals.
• Express views with relative-value structures: long ETH/short BTC spot or via options spreads to cap downside. Size conservatively and define invalidation levels.
• Monitor staking metrics (validator queue, deposits/withdrawals), L2 activity (tx counts, fees, TVL), and RWA announcements for catalyst timing.
• Keep an eye on SOL treasury adds; broadening corporate adoption can drive cross-chain rotation opportunities.

Risks to watch

- Regulatory/accounting shifts affecting corporate crypto holdings could slow treasury adoption. - Staking yield compression or validator risks (slashing, client bugs) can weaken the ETH income case. - L2 security/fragmentation events may dent confidence in Ethereum scalability. - Liquidity and concentration: Large DAT positions can amplify drawdowns if unwind pressure hits. - Macro: Higher real rates can pressure all risk assets and reduce appetite for balance-sheet crypto.

Bottom line

Treasury flows just validated ETH’s evolving investment profile, with SOL emerging as a secondary beneficiary. For traders, the edge lies in tracking treasury adoption, aligning with confirmed rotation in price action, and managing risk with disciplined sizing and hedges. Momentum favors ETH right now—but the winners will be those who adapt quickly and protect the downside.

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