Key takeaways:
The Ether unstaking queue has hit an unprecedented $12 billion, with a wait time of 44 days.
Strategic reserves and ETF holdings have surged by 116% since July 1, easing concerns about a potential ETH sell-off.
The quantity of Ether (ETH) awaiting unstaking has reached record levels, as investors seem eager to realize yearly profits.
Ether’s exit queue reaches a record $12B ETH
Last week, Ethereum’s exit queue exceeded 2.6 million ETH, equivalent to $12 billion, with a wait time of 44 days.
This noted the highest volume of Ether ever queued for withdrawal by the network’s validators, essential for adding new blocks and verifying transactions, which secures the Ethereum blockchain.
Related: What’s the potential price for Ethereum post-Fed rate cut?
ValidatorQueue reported that the number of active validators exceeded 1.05 million, with 29.4% of the total ETH supply staked, equating to about 35.6 million ETH.
“Ethereum staking exit queue is going exponential,” macro analyst MartyPary stated regarding the largest validator exit in crypto history.
This situation does not imply all validators are planning to liquidate their holdings, but a considerable portion of the $12 billion may be offloaded to secure profits, especially with Ether’s price having increased by 97% over the past year.
“The Ethereum exit queue is at an all-time high, with significant amounts of $ETH currently pending withdrawal from staking,” said crypto YouTuber Lark Davis in a post on X, adding:
“Major sell pressure is expected.”
Meanwhile, the Ethereum staking entry queue has dropped to its lowest point in four weeks, amplifying worries that a spike in the exit queue could result in a substantial sell-off.
At the time of writing, over 512,755 ETH, valued at around $2.3 billion, were awaiting staking, down from 959,717 ETH on September 5, indicating waning demand for staking Ether.
Robust institutional demand mitigates ETF sell-off concerns
Growing acquisitions and purchasing strength from Ether treasury companies and spot ETH exchange-traded funds (ETFs) are absorbing much of the selling strain.
Data from strategicethreserve.xyz shows that the combined holdings of strategic reserves and ETFs have surged 116% since July 1, rising to 11,762,594 ETH from 5,445,458 ETH.
This sharp increase signifies a swift influx of Ether into the hands of major institutional and corporate actors.
Most of these entities plan to stake the asset for additional yields within their strategies, which may enhance the entry queue in upcoming weeks.
Another positive narrative relates to the potential launch of ETH staking ETFs. This indicates that some investors may be optimizing liquidity to re-enter these products later, effectively rebalancing their exposure without leaving the ETH market.
While the SEC’s final approval deadline is set for April 2026, noted analyst Axel Bitblaze stated that the approval could come much sooner, possibly as early as October 2025.
“I understand we have been patiently awaiting the ETH ETF approval, but it’s just a matter of time now,” the analyst posted on X this Tuesday, adding:
“BlackRock’s ETH staking approval deadline is in October, and I believe the approval is highly likely.”
Capital continued to flow into crypto exchange-traded products (ETPs) over the past week, with Ethereum investment products seeing inflows of $646 million, showcasing a resurgence of institutional interest in ETH.
This article does not contain investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before deciding.
