Key takeaways:
Ether in the unstaking queue reaches a record $12 billion, with a 44-day waiting period.
Strategic reserves and ETF holdings have increased by 116% since July 1, easing concerns about a potential sell-off of ETH.
The quantity of Ether (ETH) in the unstaking queue has risen to an all-time high, as investors seem inclined to realize annual profits.
Ether’s exit queue reaches an unprecedented $12B ETH
Last week, Ethereum’s exit queue exceeded 2.6 million ETH valued at $12 billion, accompanied by a 44-day wait time.
This signifies the most substantial quantity of Ether awaiting withdrawal by the network’s validators, who are crucial for adding new blocks and verifying transactions, thereby securing the Ethereum blockchain.
Related: What is the potential price of Ethereum following a Fed rate cut?
ValidatorQueue data indicates that there are currently over 1.05 million active validators, with 29.4% of the total ETH supply staked—approximately 35.6 million ETH.
“The surge in Ethereum’s staking exit queue is significant,” macro analyst MartyPary remarked regarding the largest validator migration seen in crypto history.
While this trend doesn’t imply that all validators plan to liquidate their holdings, a considerable fraction of the $12 billion may be sold to secure profits, especially given that the Ether price has surged 97% over the past year.
“The Ethereum exit queue has reached an all-time high, with substantial $ETH volumes waiting to exit staking,” stated crypto YouTuber Lark Davis in an X post, adding:
“Expect significant sell pressure.”
Simultaneously, the Ethereum staking entry queue has dropped to its lowest point in four weeks, raising concerns that the increase in the exit queue could trigger a major sell-off.
Currently, more than 512,755 ETH, valued at about $2.3 billion, await staking, down from 959,717 ETH ($4.3 billion) on Sept. 5, indicating a decline in demand for staking Ether.
Strong institutional demand mitigates ETF sell-off fears
A rise in accumulation and purchasing momentum from Ether treasury companies and spot ETH exchange-traded funds (ETFs) are countering much of the selling pressure.
Data from strategicethreserve.xyz reveals that the combined holdings of strategic reserves and ETFs have surged by 116% since July 1, increasing from 5,445,458 ETH to 11,762,594 ETH.
This notable rise reflects a rapid influx of Ether supply into the hands of key institutional and corporate actors.
Most of these entities are likely to stake the asset for additional yields, which might increase the entry queue in the upcoming weeks.
Another positive perspective links to the anticipated launch of ETH staking ETFs. This suggests that some investors may be liquidating to reallocate into these products later, effectively adjusting their exposure while staying within the ETH market.
Though the SEC’s final approval deadline is set for April 2026, renowned analyst Axel Bitblaze believes that the approval could happen much earlier, potentially as soon as October 2025.
“Although we’ve been waiting for ETH ETF approvals, it’s now a matter of time,” the analyst commented in a recent X post, adding:
“The next deadline for BlackRock’s ETH staking approval is in October, and I am confident it will likely be approved.”
Capital continued to flow into cryptocurrency exchange-traded products (ETPs) last week, with Ethereum investment vehicles garnering $646 million in inflows, signaling a revival of institutional investor interest in ETH.
This article does not provide investment advice or recommendations. All investments and trading moves carry risk, and readers should conduct their own research when making decisions.
