Buterin Backs Ethereum Treasury Expansion, Warns of Leverage Risk
Vitalik Buterin endorses the expansion of Ethereum treasury services that hold ETH on behalf of institutional and retail investors. As interest in Ethereum treasury grows, the sector now holds about $11.8 billion in ETH, led by BitMine Immersion (833,000 ETH), SharpLink Gaming ($2 billion) and The Ether Machine ($1.34 billion). He says these services lower barriers to ETH adoption, especially for those unfamiliar with digital wallets, and notes that top treasury firms have shown greater resilience than past failures like Terra. However, Buterin warns of leverage risk: over-leveraged positions could trigger gradual price declines amid crypto volatility—Bitcoin has fallen over 60% and Ethereum over 80% in past bear markets. He urges companies and the community to adopt robust financial practices and limit leverage to ensure sustainable growth.
Bullish
This news is bullish for ETH: Vitalik’s endorsement of expanded Ethereum treasury services signals increased institutional adoption and liquidity. The scale of current holdings ($11.8 billion) and resilience of top treasury firms underscore market confidence. However, warnings on leverage risk may curb speculative excess, supporting more sustainable growth. In the short term, endorsement could drive positive sentiment and inflows into treasury services and ETH. Over the long term, robust financial practices and leverage limits may stabilize volatility and underpin healthier market structure. Overall, the balanced view promotes bullish momentum tempered by prudent risk management.