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VanEck: Institutions hoarding ETH exposes unpledged holders to risk of asset dilution

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2025-10-04 10:39:50
VanEck posted that Ethereum's December Fusaka upgrade will make the Layer 2 blockchain easier to scale by easing the data burden on validators. In this context, Fusaka enhances Ethereum's appeal by reducing L2 costs and strengthening its centrality in the scaling ecosystem, which is expected to attract more institutional adoption.
In addition, VanEck analysts also warned that unpledged ETH holders face dilution risk as institutional participants - from ETFs to crypto treasury companies - continue to accumulate ETH positions and pledge them for gains.
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