Ethereum Institutional Demand Plummets 81% as DAT Buying Slows

Recent data from Bitwise, shared by analyst Max Shannon, reveals a dramatic and steady collapse in institutional appetite for Ethereum. Purchases of ETH by publicly traded Digital Asset Treasuries (DATs) plummeted to just 370,000 tokens in November 2025. This figure represents an 81% drop from the August peak of 1.9 million ETH, highlighting a rapid deceleration in what had been one of the cryptocurrency’s strongest sources of demand. The progression of the decline is stark: after the August high, treasury buying fell to 1.06 million ETH in September, 670,000 in October, and finally the November low of 370,000.

The significance of this downturn cannot be overstated. Throughout much of 2025, DATs were a structural force in the Ethereum market, often absorbing more tokens each month than the network issued via staking rewards. Between July and November alone, these entities accumulated over 4 million ETH even as monthly issuance hovered near zero. The recent slowdown, therefore, marks a potential turning point where institutional appetite is no longer keeping pace with the aggressive accumulation strategy seen just months prior.

Analysts point to a challenging market environment as the core cause of the pullback. According to Bitwise’s Max Shannon, the “treasury model, once seen as a successor to the ‘altcoin season,’ is rapidly losing momentum.” He specifically cited declining market values for these companies, a metric known as mNAV (market value to net asset value), which is severely weakening their buying power. This has created a difficult, self-reinforcing cycle: falling crypto prices lead to a drop in the value of DAT holdings, which in turn makes it harder for these firms to raise new capital to buy more assets. The lack of fresh capital then exerts further downward pressure on prices, completing the loop.

The global nature of this pressure is evident in high-profile project cancellations. A planned $500 million Ethereum DAT venture led by major Chinese crypto figures, including Huobi founder Leon Li Lin, was recently shelved. Li explicitly cited poor market conditions and an unclear macroeconomic outlook as reasons for the pause. This decision underscores how the deteriorating sentiment is affecting strategic investment plans at the highest levels, removing a potential source of significant demand from the market.

Despite the broad institutional retreat, not every major buyer is stepping back. Data from Lookonchain indicates that Tom Lee’s Bitmine recently purchased another 18,345 ETH, worth approximately $55 million. This acquisition adds to the company’s already colossal stockpile, which now stands at 3.7 million ETH. According to CoinGecko’s treasury dashboard, publicly listed firms collectively hold over 5.7 million ETH. Bitmine’s holdings alone account for more than half of this total, making it a dominant force among corporate holders.

Bitmine’s continued accumulation presents a notable counter-narrative to the overall trend of slowing DAT inflows. However, its singular activity is insufficient to offset the broader decline in institutional demand documented by Bitwise. The data suggests the market is at an inflection point. While the historical impact of DATs as consistent, long-term demand absorbers remains, their current momentum has undeniably faltered. The future trajectory of Ethereum’s price may now depend more heavily on retail sentiment, broader macroeconomic factors, and the potential for a revival in institutional confidence, rather than the once-reliable buying pressure from corporate treasuries.