Ethereum co-founder Vitalik Buterin expressed his views on the role of treasury companies within the ecosystem, highlighting both their potential benefits and risks.
Advantages and Risks of Treasury Companies
Buterin pointed out that treasury companies allocate part of their corporate reserves to Ether (ETH), providing investors with indirect exposure to the cryptocurrency. He stated, "Having different vehicles for people to access ETH... is also good," emphasizing that variety strengthens the Ethereum ecosystem. However, he also cautioned about the risks of over-leverage: "If you woke me up three years from now and told me that the Treasury has led to the downfall of ETH, then… my guess for why would basically be that somehow they turn into an over-leveraged game."
Ethereum ETF Records
This summer, Ethereum ETFs are experiencing unprecedented demand. This week, net inflows hit a record $2.85 billion, with trading volumes surpassing $17 billion. On Monday alone, Ethereum ETFs recorded their largest single-day net inflows ever, totaling $1.01 billion. Over the first two weeks of August, they have seen more than $3 billion in inflows, marking one of the best months on record.
Community and Institutional Participants' Perception
Despite concerns, Buterin expressed confidence that the Ethereum community and institutional participants are "responsible people" unlikely to allow treasury companies to destabilize the network. He also noted the ongoing accumulation of assets by major managers like BlackRock, which had already amassed significant amounts of Ethereum by the end of July.
Vitalik Buterin emphasizes the importance of treasury companies for the health of the Ethereum ecosystem while also highlighting the risks associated with over-leveraging. The growth of BTC and ETH ETFs reflects increasing interest in cryptocurrencies at the institutional level.
