BlackRock and Other Institutions Are Staking ETH — The Supply Squeeze Is Just Getting Started

Large institutional investors such as BlackRock and Grayscale, along with Ethereum-focused treasury firms like BitMine and SharpLink, are accelerating their ETH staking activities. This trend creates fresh momentum for the asset amid ongoing volatility in the crypto market.

The surge in staking activity reflects long-term confidence in the Ethereum ecosystem. It may also support a stronger recovery in ETH prices in the near term.

ETH Staking Ratio Hits New High in March

According to a report from Lookonchain, Grayscale has staked an additional 19,200 ETH (approximately $44.6 million) through its Ethereum Mini Trust. The firm had previously staked 57,600 ETH (around $121.6 million).

Recently, Grayscale has repeatedly transferred batches of 3,200 ETH (about $7.4 million per batch) from its accounts to batch staking addresses on Coinbase. This pattern shows that the firm continues to execute a long-term accumulation and capital-locking strategy.

A recent report from BitMine highlights the massive scale of its staking operations. As of March 15, 2026, BitMine has staked a total of 3,040,515 ETH, out of total holdings of 4,595,562 ETH.

This indicates that the majority of its ETH assets are deployed in staking to generate yield rather than being held as liquid reserves. This strategy generates approximately $180 million in weekly revenue.

“This is a portion of the 4.5 million ETH held by Bitmine. The CESR (Composite Ethereum Staking Rate, administered by Quatrefoil) is 2.79% and BMNR 7-day yield is 2.81%. Bitmine is currently working with three staking providers as the company moves towards unveiling its commercial MAVAN (Made in America Validator Network) in 2026,” BitMine stated in its report.

BitMine’s ETH Staking. Source: BitMine

SharpLink has also reported strong results from its Ethereum treasury strategy. The company has generated a total of 15,464 ETH (approximately $36 million) in cumulative staking rewards since launch. It currently holds 868,699 ETH.

Beyond these firms, the launch of a staking-enabled Ethereum ETF by BlackRock — iShares Staked Ethereum ETF (ETHB) — also plays a key role in boosting staking demand.

According to CryptoQuant, the ETH staking ratio has surged throughout 2026. It reached a new all-time high of 31.1% in March. Meanwhile, ETH reserves on exchanges have dropped to record lows. This combination creates a strong supply squeeze effect that may push prices higher.

Ethereum Staking Rate and Ethereum Exchange Reserve. Source: CryptoQuant

Overall, aggressive staking activity from major institutions such as Grayscale, SharpLink, and BitMine, combined with BlackRock’s participation via a staking ETF, sends a clear signal of long-term confidence in Ethereum.

As more ETH becomes locked in staking and exchange reserves continue to decline, these factors could help ETH prices counterbalance headwinds from geopolitical and macroeconomic uncertainty.