Buterin Backs ETH Treasuries, Warns of Overleveraging
Vitalik Buterin, Ethereum co-founder, has reversed his earlier stance to endorse ETH treasuries for corporate reserves. In a recent Bankless talk, he praised ETH treasuries as “good and valuable” for diversifying balance sheets and boosting financial flexibility, while warning that overleveraging could spark volatility or an ETH price collapse. This marks a departure from his October 2024 criticism of Bitcoin stacking, which he then deemed contrary to crypto’s ethos. Buterin highlighted the importance of setting prudent exposure limits and balanced finance strategies to safeguard market stability and long-term growth in the Ethereum ecosystem.
Bullish
Buterin’s public endorsement of ETH treasuries signals growing corporate demand for ETH, which could increase institutional adoption and long-term price support. His warning on overleveraging helps mitigate extreme volatility, reassuring traders about market stability. Overall, the balanced approach is likely to foster steady ETH growth and attract new capital, making the immediate and sustained outlook bullish.