Ethereum Supply Squeeze Intensifies as Jack Ma-Backed Fund Joins Institutional Wave

The Institutional Pivot to Ethereum

Recent market activity reveals an accelerating institutional embrace of Ethereum. Data from blockchain analytics platform Lookonchain shows that large-scale buyers accumulated 218,750 ETH within a mere 48-hour window. BitMine Immersion Technologies emerged as a dominant player, securing 69,603 ETH valued at approximately $300 million. Separately, five newly minted wallets amassed over 100,000 ETH through FalconX, signaling coordinated capital inflow into the network.

Among these institutional players is Yunfeng Financial, the investment vehicle connected to entrepreneur Jack Ma, which recently secured 10,000 ETH tokens representing a $44 million position. The acquisition was entirely self-funded through the firm’s existing cash reserves, demonstrating confidence in Ethereum’s trajectory.

Digital Asset Strategy Takes Shape

Yunfeng Financial’s decision to enter the Ethereum market reflects a deliberate pivot toward blockchain-native instruments. The firm intends to formally register ETH as part of its investment portfolio, leveraging holdings for tokenization initiatives and Web3 infrastructure projects. Management indicated this move represents phase one of a broader cryptocurrency diversification plan, with Bitcoin and Solana earmarked as future additions.

By accumulating Ethereum, Yunfeng aims to establish exposure to decentralized finance ecosystems, insurance protocols, and emerging financial products built on blockchain technology. The strategic rationale centers on reducing dependency on fiat-based asset allocations while positioning the organization within high-growth segments of the digital economy.

Supply Constraints Reshaping Market Dynamics

The aggressive institutional buying coincides with a significant contraction in Ethereum availability across centralized exchanges. According to CryptoQuant analysis, exchange-held ETH reserves have declined by 10.7 million tokens since September 2022. Current on-exchange inventory stands at 17.4 million ETH, substantially lower than the 28.8 million peak previously recorded.

The past three months alone witnessed withdrawal of 2.5 million ETH, absorbed primarily by corporate treasuries and spot ETFs. This supply tightening exerts upward pressure on valuations as institutional demand accelerates without corresponding liquidity relief.

Price Action and Market Sentiment

Ethereum reached an all-time high of $4,953.73 in late August 2025, reflecting broader institutional confidence. As of the latest data, ETH trades at $2.98K with a 0.40% decline over the previous 24 hours. Despite recent pullback, the combination of diminishing exchange reserves and sustained institutional accumulation suggests market participants remain positioned for medium-term strength.

Jack Ma’s Influence on Market Perception

The participation of Yunfeng Financial, in which Jack Ma maintains an 11.15% ownership stake, carries symbolic weight within investment circles. While Ma does not engage in operational management, his capital allocation decisions historically attract market attention. The fund’s strategic entry into Ethereum signals confidence from a figure with established track records in fintech and technology innovation.

Yunfeng’s blockchain transition underscores how legacy financial institutions are recognizing digital assets as essential components of forward-looking portfolios. As the firm progresses in its Web3 expansion, its movements may influence sector sentiment among other institutional allocators monitoring the trajectory of Ethereum and cryptocurrency markets broadly.