Ethereum Treasury Demand Plummets 81%, Bitwise Warns of Unwinding Trade

Demand for Ethereum from corporate treasuries has seen a dramatic decline, plummeting by 81% in November compared to August highs. This significant drop signals an "unwinding" of the previously popular "treasury trade," according to insights from Bitwise. The trend suggests that smaller players in the market are struggling to maintain their positions.

Key Takeaways

• Ethereum treasury purchases fell from 1.97 million ETH in August to just 370,000 ETH in November.

• Bitwise attributes the collapse to the unwinding of the treasury model, with smaller entities facing difficulties.

• A "winner-takes-most" scenario is emerging, with Bitmine holding more Ether than all other digital asset treasuries combined.

The Ethereum Treasury Boom Falters

When companies began adding Ether to their balance sheets, mirroring the successful Bitcoin treasury strategy, there was considerable optimism for a similar surge in Ethereum adoption. However, this enthusiasm has waned significantly. Data from Bitwise reveals that digital asset treasury (DAT) companies acquired only 370,000 Ether in November, an 81% decrease from the peak of 1.97 million ETH recorded in August. This sharp contraction is being described as the unwinding of what was anticipated to be the "altseason" of this cycle.

Unwinding Dynamics and Market Concentration

Max Shannon, a senior research associate at Bitwise, explained that the treasury model is following patterns seen in previous cycles. As more alternative assets emerge, the available capital struggles to sustain demand across the board. The Ethereum treasury boom initially gained traction in July when companies emulated Strategy's Bitcoin playbook. Bitmine, led by Wall Street strategist Tom Lee, emerged as a frontrunner and remains one of the few active buyers.

Currently, Bitmine holds more Ether than all other 68 Ethereum treasury companies combined. The model is experiencing a collapse, marked by compressing premiums, evaporating purchasing power, and increasing challenges for smaller participants. While treasury purchases still exceed Ethereum's monthly supply of approximately 80,000 ETH, the gap is narrowing rapidly.

The "Winner-Takes-Most" Scenario

Shannon noted that if treasury buying continues to decline while new supply remains constant, the structural bid for Ether could disappear. The net difference between DAT purchases and new ETH supply has historically provided this bid. However, falling market-cap-to-net-asset-value (mNAV) multiples and shrinking coin purchases indicate this pressure is already evident. The math is stark: purchases have fallen dramatically while new supply remains steady, suggesting demand may soon fall below new supply.

This trend is leading to a "winner-takes-most" scenario, similar to the Bitcoin treasury trade. Bitmine, a significant player, holds over 3.73 million Ether, vastly outstripping its closest competitors. Shannon anticipates this concentration will intensify, as larger DATs with better access to capital markets are better positioned to raise funds, acquire more ETH, and attract further investment, creating a reinforcing cycle. Smaller treasuries, lacking this access, face a difficult path to survival, potentially becoming more reactive during Ether rallies.

Sources

• Ethereum treasuries collapse 80% as the trade unwinds, Bitwise warns – DL News, DL News.

• Ethereum treasury trade unwinds 80% as handful of whales dominate buys — TradingView News, TradingView.

• Ethereum DATs acquired only 370,000 ETH in November 2025, marking an 81% plunge from August, Cryptopolitan.