Bitwise: "Institutional buying of Ethereum continues… expectations for the Clarity Act and more"

An analysis suggests that institutional investors’ buying of Ethereum (ETH) is continuing.

Bitwise Europe, an asset manager, said via X on the 11th (local time) that “Ethereum is down about 58% from its all-time high (ATH) set in late August 2025,” adding that “(however) institutional investors’ positioning remains relatively resilient.”

Bitwise pointed to “continued selling by early Bitcoin (BTC) investors” as the main driver behind Ethereum’s recent decline. It added that “(by contrast) institutional holdings of Ethereum exchange-traded products (ETPs) are down only about 10% from the ATH,” suggesting that “even though institutional investors are sitting on losses versus their average purchase price, they are maintaining a long-term view and are not readily pulling capital.”

It also referenced trends among Digital Asset Treasury (DAT) firms. Bitwise said, “DAT companies are also continuing to buy Ethereum,” noting that “since the second half of 2025, monthly new purchases have been exceeding monthly net new issuance supply each month.” It added that “such structural demand could support Ethereum’s price going forward.”

As for the institutional buying, it described it as “positioning for regulatory clarity.” Bitwise said, “The market believes the likelihood of passage of the ‘Clarity Act,’ a cryptocurrency regulatory bill, could support a rebound in Ethereum’s price,” adding that “tokenization and stablecoin liquidity are also long-term upside catalysts.” It also noted that “while prices have fallen sharply, Ethereum’s staking ratio has risen to a record high of 30.76%,” and that “the validator entry queue continues to remain consistently longer than the exit queue.”