Ark’s Cathie Wood Breaks Down Why Ethereum Unstaking Just Exploded in Volume

Ethereum’s massive unstaking wave is unleashing a bold institutional pivot, with Ark Invest CEO Cathie Wood highlighting the shift toward equity-based exposure, liquidity plays and staking alternatives.

Ark Invest CEO Cathie Wood Ties Ethereum Unstaking Wave to Institutional Power Shift

Ark Invest CEO Cathie Wood has offered an explanation for the recent surge in ethereum unstaking, responding on July 26 to a question from ARK’s chief futurist Brett Winton on social media platform X. She linked the rise in activity to both retail incentives and strategic moves by institutional investors seeking better returns through traditional financial instruments that mirror digital asset exposure. The Ark Invest chief stated:

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.

“As with MSTR and BMNR, Treasury stocks are a way wirehouse advisors can give clients exposure to BTC and ETH,” she added. Her comments suggest that ETH holders may be responding to incentives designed to attract on-platform assets, while venture capital firms and other players position themselves for gains by leveraging the liquidity event of expiring lockups.

Wood referenced Microstrategy (Nasdaq: MSTR), which has rebranded as Strategy, and Bitmine Immersion Technologies Inc. (NYSE American: BMNR) as key examples of this Treasury company model. Strategy is fully committed to its bitcoin treasury company model, continually acquiring bitcoin as its primary reserve asset. In contrast, Bitmine has aggressively pivoted to an ethereum treasury strategy, rapidly accumulating ETH with the ambitious goal of acquiring and staking 5% of the global ethereum supply.

These companies provide traditional equity channels for crypto exposure, enabling wirehouse advisors to allocate digital assets without requiring direct token custody. While some critics interpret the unstaking wave as a sign of fading confidence in staking yields or blockchain lockups, others view it as part of a broader institutional realignment around more liquid, equity-based crypto strategies.