ETFs Surpass Corporate Treasuries as Institutions Withdraw from Crypto Market Volatility

Wall Street Faces Crypto Reality: Bitcoin Treasury Purchases Plunge … [ 1 ]

Corporate

treasury acquisitions dropped sharply by 76% in August 2025, based on CryptoQuant’s figures, reversing dramatically from the July high of 64,000 BTC. The downward trend continued into September, with corporate buying sliding to 15,500 BTC, indicating a broader move by institutions away from holding crypto directly and toward regulated investment products. This transition happened alongside a 5% weekly decrease in Bitcoin’s value, falling below $112,000, and a 13% drop in , as well as unprecedented withdrawals from crypto ETFs.

Crypto’s Mainstay Falters as Corporate Treasury Buying Slows … [ 2 ]

This retreat highlights growing macroeconomic challenges and tighter regulatory oversight. On September 22, U.S. Bitcoin spot ETFs saw net outflows of $363 million, while Ethereum ETFs lost $75.95 million. By September 25, Bitcoin ETF redemptions reached $258 million and Ethereum ETFs $249 million, totaling $502 million withdrawn in just one day. Regulatory bodies like the SEC and FINRA have begun investigating over 200 companies for unusual trading activity related to crypto treasury disclosures, raising alarms about compliance and market stability.

What’s Behind the Slowdown in Corporate Bitcoin Treasury Demand in 2025 [ 3 ]

MicroStrategy (now known as Strategy), the top corporate holder of Bitcoin with 638,985 BTC, has seen its monthly acquisitions fall from 134,000 BTC in November 2024 to just 3,700 BTC by August 2025. The firm’s modified Net Asset Value (mNAV) ratio—which reflects the premium investors pay for Bitcoin exposure—dropped from 3.89x to 1.44x, coinciding with the introduction of IBIT ETFs. This change has lessened institutional appetite for leveraged Bitcoin alternatives, as investors favor more straightforward, regulated options.

Crypto Treasury Stocks Face 50% Plunge After PIPE Transactions ... [ 4 ]

The reduction in corporate crypto purchases has triggered a cycle of market instability. In September, over $1.6 billion in leveraged crypto positions were liquidated, intensifying downward pressure on prices. The CoinMarketCap Fear & Greed Index dropped to 32/100, its lowest since March 2025, as investors moved away from riskier assets. Smaller crypto treasury companies like Kindly MD and Strive Inc. suffered significant stock declines—Kindly MD’s shares plummeted 97% after PIPE deal unlocks, while Strive Inc. fell 78% since May.

Regulators Step Up Oversight of Crypto Treasury Transactions: Over 200 … [ 5 ]

Regulatory and economic factors are reshaping the sector. The SEC and FINRA are investigating possible Reg FD breaches, with 28 new Bitcoin treasury companies appearing in July and August 2025. Analysts point to rising interest rates, stricter regulations, and enhanced corporate risk controls as reasons for the slowdown. Although institutional holdings now make up 5% of all circulating BTC, the concentration of assets in corporate treasuries has sparked worries about market vulnerability.

The Evolution and Reality of Digital Asset Treasuries … [ 6 ]

Even with the recent pullback, long-term institutional interest remains strong. Public companies added 415,000 BTC to their treasuries in 2025, exceeding the total for 2024. Still, the industry faces ongoing challenges, such as buybacks funded by debt and regulatory ambiguity. Experts caution that leveraged corporate strategies could heighten volatility, while ETF inflows—like the iShares Bitcoin Trust’s $2.5 billion in September—show that indirect crypto exposure is becoming more popular.

Bitcoin Price and Treasury Companies: Notable 1:4 Ratio … [ 7 ]

The outlook for corporate crypto treasuries depends on regulatory developments and market strength. Bloomberg reports that ETFs are now attracting institutional capital as firms seek more stable and transparent investment vehicles. While Bitcoin’s price continues to fluctuate, its use as an inflation hedge and diversification asset endures. However, the sector’s dependence on speculative premiums and leveraged investments highlights the importance of sound risk management.