Vitalik's Caution: Corporate ETH Reserves Are Positive but Over-Leverage Threat Looms

I view ETH as a legitimate asset that companies can hold in their treasuries — that’s a positive development for Ethereum and the broader crypto ecosystem. Expanding options for people to access ETH is also beneficial, improving liquidity and on-ramps for the market.

However, if you woke me up in three years and told me those same companies had caused ETH to crash, my first guess would be that the situation had devolved into an over-leveraged game. Excessive leverage and concentrated institutional exposure could amplify shocks and create systemic risk for ETH and the crypto markets.

Notably, Vitalik appears to be hinting at this risk himself, which makes the cautionary signal more credible and worth monitoring closely.