Ethereum Faces $12 Billion Withdrawal Backlog Amid Growing Institutional Staking

Ethereum is under increasing price strain as the network’s staking exit queue reaches unprecedented heights. More than 2.6 million ETH—worth close to $12 billion—is now awaiting withdrawal. This spike has extended the wait time for validators to withdraw to 44 days, sparking worries about possible selling pressure after Ether’s 97% rally over the past year Ethereum Exit Queue Hits Record $12B ETH, Raising … [ 4 ]. Experts point out that much of these funds could be cashed out for profit. However, given Ethereum’s phased withdrawal system, the ultimate effect on price remains unclear Potential selling pressure on ETH: millions in staking ready to be ... [ 1 ].

The swelling exit queue comes as staking patterns shift: for the first time in weeks, as of September 2025, the entry queue has overtaken the exit queue, with 932,936

($4 billion) waiting to be staked, outpacing the 791,405 ETH ($3.3 billion) queued for withdrawal Ethereum Staking Queue Overtakes Exits as Fears of a Sell [ 2 ]. This turnaround hints at renewed faith from institutions and long-term holders in staking returns, highlighted by an 用户，此人在长达八年未操作后，将 150,000 ETH（价值 6.45 亿美元）进行质押，目前仍持有 105,000 ETH（4.51 亿美元），表明其对资产采取了有意的长期策略 Ethereum Staking Queue Overtakes Exits as Fears of a Sell [ 2 ].

Even with the exit queue at an all-time high, steady demand from Ethereum-based financial instruments is helping to curb short-term volatility. Both spot ETFs and futures have attracted significant capital, with Ethereum treasury and ETF holdings climbing 116% since July 1 to reach 11.76 million ETH Ethereum Exit Queue Hits Record $12B ETH, Raising … [ 4 ]. These trends reflect growing institutional adoption, as strategic reserves and corporate investors absorb excess supply, making a major sell-off less likely. Analysts credit this to Ethereum’s increasing appeal as a diversified asset and the expectation of ETH staking ETFs, which may further reinforce demand Ethereum Exit Queue Hits Record $12B ETH, Raising … [ 4 ].

The current balance between withdrawals and new staking points to shifting market dynamics for Ethereum. While the size of the exit queue signals active capital reallocations, the rising entry queue demonstrates confidence in the long-term rewards of staking. Ethereum developer Preston Van Loon remarked that total staked ETH remains above 35 million units, with new deposits largely compensating for validator withdrawals Potential selling pressure on ETH: millions in staking ready to be ... [ 1 ]. This suggests that Ethereum’s gradual withdrawal design helps maintain market stability and prevents sudden supply shocks Staking withdrawals - ethereum.org [ 3 ].

Looking forward, the potential approval of ETH staking ETFs could transform market sentiment. Well-known analyst Axel Bitblaze projects regulatory approvals could come as soon as October 2025, referencing BlackRock’s pending application Ethereum Exit Queue Hits Record $12B ETH, Raising … [ 4 ]. Such products, if launched, could channel liquidity from withdrawals back into the Ethereum ecosystem, strengthening its position as both an institutional and speculative asset. For now, the market stands at a fragile crossroads, where validator choices, institutional investments, and wider economic conditions will collectively shape Ethereum’s direction in the near future.