Sygnum's Q1 2026 investment outlook reveals that approximately 45% of Ethereum's supply is currently locked or illiquid, according to ChainCatcher citing TheDefiant. The report highlights a 14.5% decrease in ETH held by exchanges this quarter, continuing a multi-year trend of declining exchange holdings. Additionally, exchange-traded funds (ETFs) now hold about 10% of the total ETH supply, while listed companies possess over 6.1 million ETH, representing roughly 5% of the circulating supply. Sygnum notes that a reduction in supply could lead to increased price volatility, contingent on rising demand.