Vitalik supports the Ethereum funding company, warning of excessive leverage risks: Can the ETH bull run continue?

Vitalik Buterin, the co-founder of Ethereum, recently publicly expressed his support for the emerging trend of "Ethereum funding companies," believing that publicly listed companies holding large amounts of ETH would help bring mainstream investors into the market. However, he also sternly warned that if the market becomes overly reliant on leverage, it could trigger a chain reaction leading to a crash in ETH prices. This article will analyze Vitalik's latest views, the current status of ETH funding companies, and the potential impact of leverage risks on future market trends.

Vitalik: Ethereum funding companies boost mainstream adoption, providing more options for investors

In a Bankless podcast interview, Vitalik Buterin emphasized that an increasing number of publicly listed companies are holding ETH through asset management firms, which allows more investors with different financial situations to participate in the Ethereum ecosystem. He believes that the services provided by these companies "are indeed valuable," especially for users who find it inconvenient to hold cryptocurrencies directly.

Beware of excessive leverage, the risk of ETH collapse should not be ignored

Despite having a positive attitude towards funding companies, Vitalik also made it clear that the ETH market cannot fall into crisis due to excessive leverage. He warned that if leverage operations go out of control in the future, a drop in ETH prices will trigger forced liquidations, causing a chain reaction of selling pressure and reputational damage, similar to the 2022 Terra collapse incident. However, he still has confidence in the discipline of ETH investors, believing that the market will not repeat the same mistakes.

ETH funding company's positions size hits a new high, becoming a catalyst for recovery

(Source: StrategicETHReserve)

Currently, the scale of ETH held by listed companies has reached 11.77 billion USD, with BitMine Immersion Technologies and SharpLink Gaming holding 3.2 billion and 2 billion USD of ETH, respectively, leading the market. This trend has become a key driver for the recent price rebound of ETH, helping it rise strongly from the year's low of 1,470 USD to 3,870 USD, narrowing the gap with Bitcoin and Solana.

Looking Ahead: Leverage and Institutional Funds as Double-Edged Swords, Can the ETH Bull Market Continue?

As capital firms continue to increase their investment in ETH, the degree of market institutionalization is continuously rising, but leverage risks are also on the rise. Investors need to closely monitor leverage ratios, liquidation pressures, and mainstream capital movements, adjusting their investment strategies flexibly. Vitalik's warning serves as a wake-up call for the market, reminding investors not to overlook potential risks while enjoying the benefits of a bull market.

Conclusion

Vitalik Buterin supports Ethereum funding companies to promote mainstream adoption but remains highly vigilant against excessive leverage. Whether the ETH bull market can continue will depend on market self-discipline and leverage management. Investors should rationally view the opportunities and risks brought by funding companies, seizing market trends while ensuring risk control.

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Last edited on 2025-08-08 01:21:50
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