Cathie Wood: The reason investors are rushing to unstake ETH

Ethereum (ETH) – the second largest cryptocurrency in the world by market capitalization is facing a sudden wave of unstaking rising to the sky.

In the past few weeks, an increasing number of retail and institutional investors have withdrawn ETH from staking protocols and transferred it to their personal wallets.

This shift is sparking much discussion in the community about the underlying causes. According to Ark Invest CEO Cathie Wood, there are two main factors driving the current wave of unstaking ETH: Robinhood's new crypto transfer reward program and the increasing interest in digital treasury assets (DAT).

Cathie Wood – CEO Ark Invest## Robinhood's 2% reward program triggers a wave of unstake ETH

The first factor and also the most direct cause leading to the recent wave of unstaking ETH comes from a strategic incentive program of the famous trading platform Robinhood.

Robinhood has just launched a new program, offering a 2% reward to users when they transfer cryptocurrency ( including ETH) into their Robinhood wallet.

Source: XThis incentive program aims to attract more holders to the Robinhood platform by creating motivation for users to unstake ETH and transfer it to the Robinhood wallet to receive rewards.

Cathie Wood mentioned this event in a previous post on X (, formerly Twitter ), suggesting that the incentives are likely a key factor driving the recent wave of unstaking.

According to the latest data, the total amount of ETH locked in staking contracts is significantly high, and any incentives related to liquidity could prompt holders to take action.

Wood explains that Robinhood's reward program can be seen as a short-term market stimulus, prompting many holders to decide to unstake their assets.

This move indicates a change in how retail investors interact with staked ETH. Unstaking usually requires a certain waiting period, so it has historically been a strategy characterized by stability and long-term outlook.

However, the incentives from Robinhood seem to be encouraging short-term thinking, causing ETH to flow out of staking contracts and into markets with higher liquidity.

The Rise of Digital Treasury Assets

Although Robinhood's reward program may have created a short-term reaction in the market, Cathie Wood points out a longer-term strategic shift in how institutional investors and venture capital funds are managing their ETH holdings.

According to Wood, the activity of transferring ETH that has been staked into DAT has increased significantly. DAT refers to companies that hold large amounts of crypto on their balance sheets and are increasingly favored by institutional investors, as they provide a way to access digital assets while still complying with traditional financial frameworks.

The operational model of DATs is similar to Strategy – the company famous for holding a large amount of Bitcoin. Strategy currently holds over 607,770 BTC, worth approximately 71.35 billion dollars, making it the publicly listed company with the most Bitcoin in the world.

Similarly, an increasing number of ETH holders (, especially large financial institutions ), are beginning to recognize the value of transferring ETH into DAT as a form of strategic storage. For example, SharpLink Gaming's SBET token provides holders access to over 1 billion dollars worth of staked ETH.

This development signals a new era, as corporate treasuries begin to shift towards on-chain assets, providing comprehensive programmability and integrating DeFi functionalities in real-time.

Cathie Wood believes that this strategy can help investors access crypto while benefiting from the rise in stock prices of companies managing those assets.

Why is DAT attractive to financial advisors?

For traditional financial advisors, the crypto world has long been a difficult field to access. The legal environment surrounding direct exposure to crypto has limited the ability to offer related products to clients in a compliant manner.

However, buying shares of companies that hold large amounts of crypto, such as those operating under the DAT model, is becoming a viable alternative for financial advisors looking to incorporate digital assets into their clients' portfolios.

The appeal of this strategy lies in its ability to provide indirect access to digital assets. When investors transfer ETH to companies like SharpLink Gaming or other DATs, they can benefit from the price appreciation potential of digital currency without having to directly hold or manage the asset.

Although there are still concerns about the strong volatility associated with the direct ownership of digital currencies, financial advisors can still provide their clients with the opportunity to access indirectly through the stocks of related companies. This makes DAT an attractive option for both institutional investors and financial advisors.

Market developments ETH and concerns about liquidity

The wave of unstaking ETH is occurring simultaneously with some other notable developments in the market. The price has risen to the sky by over 55% in the past 30 days, reflecting a very positive market sentiment.

However, as ETH gradually exits staking contracts, liquidity in the market is also increasing. Higher liquidity can lead to greater volatility, especially in the context of a market that is still in the process of maturing and evolving.

From an organizational perspective, holders with large amounts of ETH are adopting strategies aimed at long-term profit. However, as ETH becomes increasingly accessible and more liquid for retail investors through platforms like Robinhood, the balance between staking and liquidity becomes a key factor.

Organizations are betting on using the DAT strategy as a way to mitigate market volatility while leveraging the growth momentum of the Ethereum ecosystem.

The combination of short-term incentives from Robinhood and the strategic shift towards DAT is reshaping the way both individual and institutional investors interact with Ethereum.

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