Ethereum giant spends billions on Wall Street: A game of a new financial order

**Authors**: Isabelle Lee, Muyao Shen, Bloomberg  

**Translator**: Saoirse, Foresight News  

**Translator’s Preface**: As ETH surged 75% since June to near all-time highs, a capital feast centered on Ethereum is quietly spreading to Wall Street. In the ancient bank halls of Manhattan, cryptocurrency advocates are heralding the arrival of a new financial era — this time, the protagonist is no longer Bitcoin, but Ethereum, regarded as a "programmable ledger." From companies holding over $6 billion in ETH to institutions seeking to integrate it into mainstream financial products, capital is betting that Ethereum is not merely a speculative tool but could become the core infrastructure connecting Wall Street with new technologies. Behind this "staking race" lies a battle for the future financial order and another assault by cryptocurrencies on the traditional financial system.  

Last week, a gathering in the grand halls of Manhattan’s Cipriani 42nd Street hotel was being endowed with special significance by cryptocurrency supporters. Beneath marble columns and crystal chandeliers, they declared the dawn of a new financial era that transcends Bitcoin.  

August 12, 2025, scene from "NextFin NYC," part of the "Ethereum NYC 2025" conference series. Photo: Isabelle Lee/Bloomberg  

Just days earlier, Ethereum, the world’s second-largest cryptocurrency, had soared approximately 75% since June, nearing its all-time price peak. Inside the former Bowery Savings Bank building, executives from the digital asset sector gathered not only to celebrate a milestone victory but also to send a clear message to the financial world: Ethereum is no ordinary speculative instrument; it is the core of the future monetary system. Corporations that include it in their reserves may accelerate the realization of this vision.  

Tom Lee, Chairman of BitMine Immersion Technologies, who took the stage to speak, is a staunch advocate of this idea. Once obscure on Wall Street, the company now holds over $6 billion worth of Ethereum, with a clear and bold strategy: not just to hold Ethereum, but to build a complete business ecosystem around it. "Ethereum will be the intersection of Wall Street and artificial intelligence," Tom Lee emphasized repeatedly in his public remarks.  

This assertion may seem radical, given that Ethereum’s current main activity still revolves around token transactions among cryptocurrency users. But to Tom Lee, the underlying logic is self-evident: Unlike Bitcoin, Ethereum is not merely a currency but a programmable distributed ledger. Software programs called "smart contracts" can run automatically on it, enabling transaction processing, interest payments, or loan management without bank intermediation.  

People use it to exchange cryptocurrencies, transfer stablecoins, or access crypto-collateralized loans — each operation requires paying Ethereum as a fee. The more businesses and projects rely on its infrastructure, the greater the demand for Ethereum. If corporate fund managers quietly hoarding Ethereum are correct, they stand to profit not only from price gains but also to seize architectural advantages before the future financial system takes shape.  

While Ethereum remains the most active blockchain by on-chain transaction volume, it faces dual challenges: On one hand, rivals like Solana are rising with faster speeds and lower costs (its price hit a new high this year); on the other, the market still lacks sustained, committed buyers. Tom Lee and Ethereum co-founder Joe Lubin argue that corporate reserve plans offer a structural solution to the demand problem — locking up supply to build a firm floor for the market.  

"There’s still a large amount of Ethereum in circulation," Lubin told Bloomberg in July. "It’s like a race: If we and more projects lock up significant amounts of Ethereum, it will drastically improve the supply-demand dynamic."  

However, this vision is encountering another form of resistance: Financial giants are building private "blockchain tracks." Stablecoin issuer Circle is developing its own network, bypassing Ethereum’s shared infrastructure model by reducing fees and retaining customers. If this privatization trend continues, Ethereum could be excluded from the very systems it aims to empower. Payment giant Stripe is taking similar action, according to Bloomberg Terminal reports.  

The strategy of corporations reserving Ethereum directly draws inspiration from Michael Saylor, Bitcoin’s most prominent advocate. In 2020, Saylor transformed Strategy Inc. into a quasi-Bitcoin ETF, amassing $72 billion worth of Bitcoin. BitMine’s scale is smaller (holding just 1% of Ethereum’s circulating supply), but its ambition is large: Lock up enough assets to make scarcity a natural moat. Tom Lee predicts that if Wall Street大举入局 Ethereum projects, its price could surge from around $4,300 to $60,000. However, Saylor’s success coincided with a historic cryptocurrency bull market, leaving doubts about whether Ethereum can replicate this path.  

"Strategy’s Michael Saylor spent four years proving the value of holding underlying assets; through an Ethereum reserve strategy, leveraging liquid listed companies can create far more value for shareholders than the underlying assets alone," Joseph Chalom, co-CEO of Sharplink Gaming, said on Bloomberg TV. The former BlackRock executive helped the world’s largest asset manager launch an Ethereum ETF (ticker: ETHA), and SharpLink now holds over $3 billion in Ethereum.  

Supporters argue that data favors Ethereum: Its issuance is already low, and a portion of each transaction fee is permanently destroyed, potentially reducing its total supply over time. Corporate long-term reserves will further exacerbate this scarcity. Skeptics, however, point to a cyclical risk: Corporate holders may sell as decisively as they bought, amplifying market downturns.  

"The crypto community favors reserve-backed companies because they assume they’ll only keep buying and holding," noted Omid Malekan, an adjunct professor at Columbia Business School. "But there’s no free lunch. Most overlook the possibility: If a crypto bear market hits, these companies might start selling."  

A key advantage of Ethereum over Bitcoin is its "staking" mechanism — locking up Ethereum to support network operations in exchange for rewards. This transforms it from a static commodity into an income-generating asset similar to dividend-paying stocks. However, mainstream ETF investors cannot currently access these rewards directly.  

According to July regulatory filings, BlackRock is working with other issuers to add staking features to the ETHA product, meaning retail investors could soon gain both price appreciation and staking returns through a single product. The fund has grown to $16 billion in just over a year.  

Despite Ethereum’s vibrant ecosystem, it has yet to penetrate daily financial scenarios like payments, shopping, or savings, and many of Wall Street’s tokenization projects remain in testing. But Tom Lee believes change is underway: AI companies, payment firms, and large financial institutions are pioneering applications on Ethereum.  

"I see multiple trends propelling Ethereum into the most important macro trading opportunity of the next 10 to 15 years," he said.  

Ethereum’s supporters now extend beyond bank research departments to politics: World Liberty Financial, a decentralized finance firm linked to the Trump camp, disclosed purchasing millions of dollars in Ethereum this year; Eric Trump, co-founder of American Bitcoin Corp. (a Bitcoin mining company tied to the Trump family), publicly cheered its rally; Standard Chartered raised its year-end price target from $4,000 to $7,500; and Ark Investment Management has upgraded its long-term outlook.  

Price gains are real, corporate holdings are确凿, and conviction runs deep. But Ethereum’s true test is not whether it can keep rising, but whether it can stand firm — whether companies can weather the next crash, and whether the token can transcend its role as a speculative tool.  

"Financial institutions see Ethereum as a natural fit," said Tomasz Stańczak, Executive Director of the Ethereum Foundation. "They understand which products to build, which links to optimize, and where efficiency gains can be achieved."  

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