Vitalik Buterin, co-founder of Ethereum, expressed his support for treasury firms working with the cryptocurrency in a podcast on August 7, 2025.
Support for Ethereum Treasury Firms
Vitalik Buterin expressed support for Ethereum treasury firms, which hold nearly 2.5% of the total ETH supply. He noted that these firms provide valuable services, including access to new investors and financial flexibility.
Institutional Investments and Risks
The firms collectively hold ETH worth $11.77 billion, indicating significant institutional interest. However, Buterin warned of potential risks associated with unchecked leverage that could destabilize the market.
Lessons from the 2022 Terra Collapse
Buterin compared Ethereum's financial management approach to the aggressive strategies seen in earlier DeFi cycles, such as the 2022 Terra collapse. He emphasized the importance of disciplined risk management for ensuring ETH's stability.
Buterin's insights highlight the necessity for a cautious investment approach and risk management to ensure Ethereum's future stability.
