Ethereum (ETH), as an important participant in the crypto assets market, has its circulating supply distribution as a focal point for investors. The latest data shows that of approximately 120 million ETH in total circulating supply, only six major holders account for nearly 50% of the share. Although this data may be skewed due to incomplete staking statistics, it still reflects the high concentration of ETH holdings.

Recently, traditional financial institutions and Web3 native enterprises have shown a noticeable divergence in their ETH holding strategies. Since January this year, ETH exchange-traded funds (ETFs) have increased their holdings by approximately 2 million ETH, while companies like MicroStrategy have significantly increased their holdings by 3 million. This indicates that interest in ETH is rising within the traditional financial sector.

In contrast, major players in the Web3 space such as the Lido staking protocol, lending platform Aave, and long-term supporters like the Ethereum Foundation are showing a trend of reducing their ETH holdings. At the same time, on-chain data indicates that the trading behavior of most large ETH holders has also leaned towards reduction recently.

However, we need to interpret this data with caution. The trading behavior of large holders may not always reflect their true intentions. For example, futures contracts provided by institutions such as the Chicago Mercantile Exchange (CME) allow investors to hedge without actually holding Crypto Assets. At the same time, companies like MicroStrategy may have more complex investment strategies behind them.

The flow of funds between the Crypto Assets market and the traditional stock market is also worth following. There is still controversy over whether the Crypto Assets market has attracted funds from the stock market or vice versa.

Overall, the ETH market is experiencing a tug-of-war between traditional finance and emerging Web3 forces. This dynamic balance not only reflects the diversification of market participants but also showcases the continuous evolution of the Crypto Assets ecosystem. While investors follow the movements of these large holders, they should also consider broader market factors to formulate their investment strategies.