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- Zafar Naik
Zafar Naik
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jul 26, 2025 10:55 UTC
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Cathie Wood Explains Why Ethereum’s Unstaking Queue Just Hit New Highs
Ethereum’s unstaking queue hits a record 13 days with over $2.7B in ETH waiting to exit.
Cathie Wood blames VCs and treasury firms for draining ETH from staking.
Corporate stocks like SBET offer ETH exposure without holding crypto, shifting how institutions engage.
Ethereum’s unstaking queue has reached a new record. As of today, over 733,000 ETH, worth around $2.76 billion, is waiting to be withdrawn. The queue has stretched to 13 days, the longest wait time the network has ever seen.
That’s not all. Ethereum now has more than 1 million active validators, with 35.6 million ETH locked in staking – nearly 30% of the total supply. And as more validators pile in, staking rewards have dropped. The current APR is just 2.97%.
Cathie Wood is pointing right at it.
Who’s Behind This?
According to ARK Invest CEO Cathie Wood, the sudden spike in unstaking isn’t being driven by retail investors. It’s VCs and corporate treasury firms who are pulling out ETH in large chunks.
Sharing her thoughts on X, she said the pressure on Ethereum’s network is coming from “Robinhood offering a 2% match for crypto transfers, and VCs and other investors shifting staked ETH into Treasury companies (DATs) to double their money when lockups expire“
It offers a 2% bonus on crypto transfers this month, but only to Gold-tier users. That small bonus seems to be having a big effect, sparking liquidity moves that have clogged up the exit queue.
TradFi Firms Are Gaining ETH Exposure Without Holding ETH
At the same time, some companies are quietly building exposure to ETH without holding tokens directly. SharpLink Gaming (SBET) and Bitmine Immersion (BMNR) have both become major ETH holders.
These firms, backed by Joseph Lubin and Tom Lee, now hold more ETH than the Ethereum Foundation itself. That says a lot about how the market is evolving.
Understanding Digital Asset Treasuries
There’s also a new concept catching attention – Digital Asset Treasuries (DATs). Companies like SBET are turning their stock into something far more flexible.
Instead of just sitting in a portfolio, this equity can now be used in DeFi lending, staking, and derivatives. As FalconX’s Matt Sheffield put it, “Digital asset treasuries are opening new doors… bringing the capital efficiency of public markets to DeFi.”
These DATs let investors interact with tokenized stocks directly from their wallets, without needing brokers or banks.
ARK Invest Pulls Back From Crypto Stocks
In a related move, ARK Invest has sold over $12 million worth of Coinbase shares, along with cuts to holdings in Block, Roblox, and others. Meanwhile, it increased exposure to Tesla and Iridium Communications.
Ethereum Is Changing and So Is How It’s Held
The surge in unstaking requests reflects a broader change in how investors interact with Ethereum.
Whether it’s a short-term liquidity play or the start of something bigger, one thing’s clear: Ethereum’s role in traditional finance is growing fast and it’s no longer limited to the blockchain alone.
This is an interesting trend to watch!
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FAQs
Over 733,000 ETH is queued for withdrawal, driven by VCs and firms shifting assets to Digital Asset Treasuries (DATs).
Cathie Wood cites Robinhood’s 2% crypto match and investor moves into DATs as key drivers of the unstaking surge.
DATs are firms holding tokenized assets used in DeFi, letting investors gain crypto exposure without holding ETH directly.
ARK sold $12M in Coinbase stock, reducing crypto exposure while increasing positions in Tesla and Iridium.
Yes 
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