Cathie Wood Explains Why Ethereum’s Unstaking Queue Just Hit New Highs

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 As of today, over 733,000 ETH, worth around $2.76 billion, is waiting to be withdrawn.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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