Ethereum's exchange supply has plummeted to levels not seen since 2016, with the exchange supply ratio now at 0.137, according to CryptoQuant. Institutional investors, including those under Countering the Financing of Terrorism frameworks, have accumulated 5,961,187 ETH, representing 4.94% of the total supply, valued at approximately $17.7 billion. BitMine Immersion alone has added 407,331 ETH in the past month. This trend is driven by increased staking, Layer 2 solutions, and treasury adoption, which are tightening supply and creating a market environment characterized by low liquidity and high demand. Additionally, exchange licensing requirements are impacting institutional on-chain activities.