Ethereum News: Analyst Foresees Increased ETH Accumulation as Institutions Bet Big

Analyst Advises Traders to Follow Smart Money as Institutions Bet on Ethereum

An analyst advises traders to follow smart money as huge institutions like BlackRock bet on Ethereum (ETH) before the altseason peak. The price of ETH has managed to hold its $2,000 value despite recently dipping to the $1,900 range. The pioneer altcoin asset has recovered alongside Bitcoin this week. The analyst predicts that ETH accumulation will increase monumentally over the next 6-9 months.

Fidelity to Launch OnChain Share Class on Ethereum

Fidelity Investments plans to launch its “OnChain” share class, a tokenized version of its Fidelity Treasury Digital Fund (FYHXX), on the Ethereum blockchain. The fund manages $80 million, mostly in U.S. Treasury bills. The “OnChain” share class will not tokenize the Treasury bills themselves but will track transactions of the fund on Ethereum, offering investors greater transparency and verifiability. Fidelity filed with the US Securities and Exchange Commission (SEC) on March 21, 2025, aiming for a May 30 launch, pending approval. This move places Fidelity alongside major players like BlackRock and Franklin Templeton in the growing world of blockchain tokenization. Fidelity will still keep traditional book-entry records as the official ownership ledger.

Custodia, Vantage Launch First US Bank-Issued Stablecoin Avit on Ethereum

Custodia Bank and Vantage Bank have issued the first US bank-backed stablecoin, called Avit, on the Ethereum blockchain. The stablecoin was used in a series of test transactions with a business customer, demonstrating a fully compliant process for minting, transferring, and redeeming stablecoins on a permissionless blockchain. Avit tokens were created using the ERC-20 standard and the pilot involved real-world business-to-business transfers and redemptions. This marks the first time dollar demand deposits from regulated banks have been tokenized on Ethereum.

Custodia Issues Bank-Issued Stablecoin on Ethereum

Crypto-friendly Custodia Bank, in collaboration with Vantage Bank, has completed the tokenization of dollar-demand deposits with the issuance of its trademarked Avit stablecoin on Ethereum mainnet. The stablecoin issuance, described as the “first bank-issued stablecoin on a permissionless blockchain,” took place in eight transaction stages. Custodia Bank handled the blockchain issuance and custody services, while Vantage Bank provided FedWire/ACH services and managed the stablecoin fiat reserves. Custodia Bank CEO Caitlin Long stated that they broke ground on the legal and regulatory front, proving that U.S. banks can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatory-compliant manner.