Is Wintermute Running Out of ETH?

Ethereum is back in the spotlight, but this time the focus isn’t on price action—it’s on supply constraints in institutional markets. Wintermute, one of the largest OTC (over-the-counter) crypto trading firms, has reportedly nearly depleted its ETH reserves, highlighting surging institutional demand.

This rare liquidity crunch signals a deeper market shift: Ethereum is becoming a preferred asset among institutional players, while retail traders chase newer altcoin trends.

Wintermute’s ETH Shortage: A Sign of Heavy OTC Demand

Wintermute CEO Evgeny Gaevoy confirmed that the firm’s available ETH supply for OTC sales is nearly exhausted. This is significant—Wintermute is a top liquidity provider in global crypto markets, and such a scenario underscores unusually strong buying pressure.

Key Takeaways:

• The ETH shortage is not due to technical limitations—it’s due to rapid, large-scale purchases from institutional clients.
  
   
• The move coincides with broader bullish sentiment in crypto markets, especially around Ethereum and Bitcoin.
  
   

Read more: This Whale Made $15 Million from ETH! How You Can Follow Along

Institutional Demand Surges While Retail Rotates

Recent trends show a clear divergence between institutional and retail behavior:

• Institutions are allocating more to ETH—Wintermute’s internal metrics show 67% of ETH flow is now institutional.
  
   
• Retail interest is shifting to altcoins, seeking faster returns and volatility-driven gains.
  
   
• ETH ETF inflows and corporate treasury allocations continue to strengthen the case for ETH as a long-term macro asset.
  
   

OTC options volume rose 412% YoY in H1 2025, confirming that institutions are not only buying ETH but also using derivatives to hedge or speculate—another sign of maturing demand.

Market Complexities: Whale Sells and Hedge Fund Shorts

Despite the bullish backdrop, the ETH market isn’t without friction:

• In early July, whales sold around 98,500 ETH ($277 million), temporarily increasing supply pressure.
  
   
• Some hedge funds have opened short positions, likely betting on near-term volatility or price corrections.
  
   

Yet, on-chain data tells a different story—large wallets are still accumulating ETH overall, and institutional inflows appear to outweigh outflows.

Read more: Why Peter Thiel’s 9% Stake in BitMine Signals Growing Billionaire Interest in Ethereum Treasury

What This Means for ETH Price and Liquidity

Wintermute running low on ETH OTC inventory signals one thing clearly: available ETH is tightening at the top of the market. This doesn’t mean retail platforms will run out of ETH—but institutional OTC pathways, often used for large, off-exchange deals, are facing stress.

This supply-demand imbalance could support price appreciation if demand remains elevated and whale selling stabilizes.

Final Thought

While volatility remains, the deeper market structure is turning increasingly bullish for Ethereum. With OTC supply nearly drained and institutional players maintaining large positions, ETH could see sustained upward momentum in the coming weeks.

However, it’s crucial to watch:

• ETF inflows and treasury news
  
   
• Hedge fund positioning
  
   
• Whale activity and on-chain accumulation trends
  
   

Wintermute’s shortage isn’t just a headline—it’s a signal that institutional crypto is evolving, and Ethereum is at the core of that shift.

Read more: 

Are Institutions Buying ETH? Analyzing the Potential

Crypto Bull Run Predictions: Bitcoin, Ethereum, XRP & Top Crypto Picks

Where is ETH Going? Here is an Analysis from Wall Street Traders

What is Ethereum Dominance Chart and How to Use It?

FAQ 

Why is Wintermute running out of ETH?

Due to a surge in OTC demand from institutional investors, Wintermute’s ETH inventory has been nearly depleted.

What does OTC demand mean for ETH price?

Strong OTC demand often signals institutional accumulation, which can lead to reduced supply and potential price appreciation.

Are institutions buying Ethereum now?

Yes, institutional allocation to ETH remains strong, supported by ETF inflows, treasury strategies, and rising derivatives activity.

Should retail investors follow institutional moves?

Institutions often have long-term strategies. Retail investors may benefit by aligning with these trends but should factor in volatility and timing.

Is this ETH rally sustainable?

It depends on continued demand, ETF flows, and how whales and hedge funds behave in coming weeks. Fundamentals appear strong, but short-term corrections are possible.