Institutional Adoption Poised to Catapult Ethereum to New Heights
Wall Street's crypto embrace could fuel Ethereum's next explosive move.
The Institutional Floodgates Open
Major financial players are finally diving into ETH—and they're not just dipping toes. Traditional finance giants are building infrastructure while hedge funds allocate serious capital. This isn't retail FOMO anymore.
Regulatory Green Lights
Clearer frameworks are emerging worldwide, giving institutions the confidence to deploy billions. The SEC's recent guidance removes key roadblocks that kept pension funds and endowments sidelined.
Infrastructure Matures
Custody solutions that once made CFOs sweat now meet institutional standards. Trading desks that previously mocked crypto now run 24/7 ETH liquidity operations. The plumbing's finally professional-grade.
Because nothing makes traditional finance move faster than seeing competitors profit while they were busy writing skeptical research reports.
Friedman says fringe digital assets are becoming mainstream
The analyst believes that ETH is rising because cryptocurrencies, once viewed as fringe assets, are now becoming more mainstream. He also stressed that crypto, which was driven by retail investor, is now benefiting from steadily increasing institutional interest.
Cyprien Grau, lead at zkEVM rollup Status Network, previously said ETH’s institutional adoption is a net positive because it carries the cryptocurrency’s value out of the crypto-native bubble and into the real-world economy. He explained that what institutions want aligns with Ethereum’s endgame, which includes credible neutrality, faster settlements, privacy, lower fees, decentralization, and scale.
“They do not want to settle on each other’s private ledgers. They want a credibly neutral ground where everyone can transact under the same rules. Trying to steer Core protocol governance would put those properties at risk, so the dominant strategy is cooperation, not capture.”
–Cyprien Grau, head at the Status Network
Crypto analyst and YouTuber Wendy O also contributed her opinion, saying that the most positive aspect of ETH is that spot and future ETFs have been approved. However, she pointed out that this did not seem to move ethereum as the market had expected, as sentiment remained down.
Brian Huang, the co-founder of Glider, also claimed that the crypto investor mindset has taken a hit lately, especially after many speculators suffered losses due to the closure of leverage positions on October 10. Wendy O believes that crypto has been in a “crab market” since the crypto liquidation occurred.
However, SoSoValue data show that U.S. spot Ethereum ETPs (exchange-traded products) have notably increased in value since their debut last year. The data further reveal that ETH ETFs have doubled in value since the beginning of this year, reaching over $26.5 billion, primarily due to growing interest from institutional investors.
Tychey says Ethereum is the biggest economic playground
Jerome de Tychey, president of Ethereum France and CEO of Cometh, claims Ethereum is the biggest economic playground, and investors should not be worried when institutions join the fun. He also believes that Ethereum has been consistent on the neutral transport narrative, and institutions not choosing ETH directly are only delaying the inevitable. The Ethereum France President emphasized that such institutions will eventually pick on ETH due to the network’s censorship resistance and radical neutrality.
The co-founder and Ceo of SSV Labs, Alon Muroch, also says fears that institutions could pose a threat to Ethereum are unfounded. He pointed out that even the largest consortia would be unable to influence ETH’s future because they would pose no threat to either Ethereum or its decentralization. Murdoch added that big-name L2s, such as Robinhood, will still be built and settled on the Ethereum network, which is ultimately beneficial for the ecosystem.
Strategic ETH Reserve data shows that the total amount of ETH held on corporate balance sheets exceeds 5.9 million. Tom Lee-backed BitMine Immersion leads with over 3 million ETH in its stockpile, while Sharplink, chaired by Joseph Lubin, is second with more than 840,000 ETH. Meanwhile, staking on the Ethereum network keeps hitting ATHs with over 35.7 million ETH (~$138B) currently locked in staking contracts.
However, another analyst at Seal 911 Pcaversaccio believes institutional adoption is Ethereum’s biggest threat. The analyst warns that TradiFi could tame the network’s open, cypherpunk spirit. Meanwhile, Grau believes institutions should build on L2s if they want more control and customization. He explains that L2s retain EVM composability and tooling, inherit Ethereum’s liquidity and security, and allow institutions to design their policy and execution rules.
Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
