Institutional Shadow War on Ethereum: "7 Siblings" quietly accumulating over $800 million in ETH, ushering in a "Silent Revolution" in the ETH ecosystem

A mysterious institution emerges, with holdings shocking the market

While the entire crypto market is still debating the flow of funds into Bitcoin ETFs, an entity called "7 Siblings" is quietly rewriting the power landscape of Ethereum. According to the latest on-chain analysis, this institution currently holds 252,000 ETH, with a total value surpassing $800 million, climbing to the fifth-largest institutional holder, even surpassing the Ethereum Foundation’s own public holdings.

The impact of this data is: while retail investors are still debating whether "ETH has been forgotten," whales have already given the answer through action. The "7 Siblings" began accumulating ETH in October 2024, purchasing a total of 48,588.72 ETH, investing approximately $169 million, with an average cost of $3,479 per ETH. This means that compared to the current market price, their recent position still faces an unrealized loss of about $322 per ETH.

But this is precisely the most intriguing part of the story—continuing to buy during unrealized losses, rather than engaging in short-term arbitrage.

Institutional Strategy Shift: From "Speculation" to "Accumulation"

The operation mode of "7 Siblings" reveals a deeper transformation: institutional investors’ approach to ETH has shifted from "swing trading" to "strategic reserves." This change resonates with recent actions by multiple institutions:

Bitmine’s "Ethereum Faith": This week, Bitmine, led by Wall Street legend analyst Tom Lee, announced its ETH holdings have exceeded 4.1 million ETH, accounting for over 3% of the total supply, and is accelerating its staking plans. This US-listed company positions itself as a "long-term guardian of Ethereum."

Strategy’s "Bitcoin Obsession": Although Strategy recently increased its BTC holdings by 1,229 BTC with $109 million, its logic of accumulating core crypto assets is similar to "7 Siblings"—using market downturns to build strategic reserves regardless of short-term gains or losses.

Korean Financial Giants’ Cross-Border Moves: Mirae Asset reportedly plans to acquire a 92% stake in exchange Korbit for $97 million, confirming that traditional financial institutions are shifting from "wait-and-see" to "deep participation."

These seemingly independent actions actually sketch the same picture: by 2025, the crypto market is transitioning from retail-driven to institution-led, evolving from trading to strategic allocation.

Ethereum Foundation Surpassed: A Symbolic Turning Point

The fact that "7 Siblings" now hold more ETH than the Ethereum Foundation carries deeper implications.

The Ethereum Foundation, as the protocol’s developer and maintainer, mainly holds ETH for ecosystem funding and operational expenses—essentially a "functional reserve." In contrast, institutions like "7 Siblings" represent "capital reserves"—they buy ETH not to pay gas fees or fund developers, but because they believe in ETH’s store of value and future appreciation potential.

This surpassing signifies that Ethereum’s value is being independently validated by external capital, no longer relying solely on internal ecosystem narratives. When capital begins to back ETH with its own balance sheet, its asset attributes have transcended the original role of a "functional token."

Institutional Calculations Behind Unrealized Losses: Time for Space

It’s worth noting that "7 Siblings"’s cost basis is higher than the current market price, which might seem counterintuitive in traditional investing logic. But institutional players have a different calculus:

First, they are targeting a revaluation over the next 2-3 years, not short-term price swings. Ethereum’s Layer 2 ecosystem, enterprise applications, and potential monetary policy adjustments are long- to mid-term catalysts.

Second, their capital costs are incomparable to retail investors. For institutions managing billions or even hundreds of billions of dollars, paying $3,479 per ETH is more about "reasonable allocation" than "high-cost entry." They seek overall portfolio risk-adjusted returns, not individual trade profits.

Third, staking yields provide a cushion. Currently, ETH staking yields around 3-4% annually, which for long-term holders not only reduces effective costs but also generates stable cash flow.

Market Impact: From "Liquidity Trap" to "Value Sedimentation"

The continuous influx of institutions like "7 Siblings" is changing ETH’s market structure. On one hand, large amounts of ETH are locked in long-term addresses, reducing circulating supply; on the other hand, their "accumulation" behavior lowers market turnover, making price discovery more reliant on fundamentals rather than sentiment.

This shift may initially manifest as "liquidity drying up"—Bitcoin ETF outflows have continued for four weeks, totaling $1.2 billion, and overall market trading activity has declined. But in the long run, concentration of core assets among strong hands often signals the beginning of a major rally.

Historical data shows that during the 2019-2020 bottom at around $3,000, institutional accumulation was also prominent. Grayscale Trust kept increasing holdings while retail investors exited due to bear market trauma. The subsequent story is well known.

2026 Outlook: Ethereum’s "Institutionalization" Year?

Cantor Fitzgerald recently issued a report warning that "2026 could see a crypto winter," but also emphasized that this will be a period of "more institutionalized, more orderly" market correction. This aligns perfectly with "7 Siblings"’s logic—winter isn’t a disaster but a discount season for quality assets.

Currently, Ethereum’s ecosystem is undergoing key transformations:

• Technical: Layer 2 solutions are maturing, reducing mainnet load and paving the way for large-scale applications

• Policy: US SEC’s stance on ETH’s security status is becoming clearer, reducing regulatory uncertainty

• Application: In the wave of RWA (Real World Asset) tokenization, ETH’s role as a settlement asset is being reinforced

• Capital: From "7 Siblings" to Bitmine, institutional holdings have reached historic highs

These factors form the basis of the "long position" logic for institutions—they are betting not on next month’s price but on Ethereum’s central role in future financial infrastructure.

Investor Takeaways: Walking with Giants

For ordinary investors, the holdings data of "7 Siblings" offers important insights:

First, unrealized losses for institutions do not mean retail traps. On the contrary, when institutions continue to buy during "being trapped," it often indicates their judgment of asset value far exceeds current prices.

Second, the "institutionalization" of ETH is irreversible. As more traditional financial institutions gain custody licenses, ETH is shifting from a "risk asset" to an "alternative investment staple."

Third, time is the most critical variable. Institutions use their balance sheets to set a price floor for ETH, but the upside potential requires time. For investors unable to lock in 2-3 years like institutions, dollar-cost averaging may be the best strategy.

Conclusion: Silent Consensus, Deafening Impact

"7 Siblings" has not published grand whitepapers or held high-profile launches; they are simply writing their judgment through on-chain transactions. This silence is more powerful than any market noise.

When the Ethereum Foundation’s holdings are surpassed, we see not just a change in rankings but the maturation of crypto assets from "ideological experiments" to "pragmatic allocations." Institutions are voting with real money, and their unrealized losses may serve as the bottom safety net for the next generation of investors.

How will the market perform afterward? Will these whales adjust strategies due to short-term volatility? Can ETH establish itself as an "institutional-grade asset" by 2026?

The answer is not in the K-line chart but in every participant’s choice.

What are your thoughts on "7 Siblings"’s holdings? Where do you think institutional continuous entry will lead ETH? Share your views in the comments!

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency markets are highly volatile; please make decisions cautiously according to your risk tolerance.