Yi Lihua's Strategic Ethereum Accumulation: A Bear Market Opportunity with Long-Term Institutional Staking Vision

In the evolving landscape of institutional crypto adoption, Yi Lihua, founder of Liquid Capital, has emerged as a vocal advocate for Ethereum's long-term potential. Amid a bearish Q4 2025 market, Yi's strategy-allocating $10 billion to purchase Ethereum during price dips-reflects a calculated bet on the asset's institutional appeal and staking-driven value creation. This approach, while currently showing a $143 million paper loss on his 645,000 ETH holdings, underscores a broader shift in market dynamics where institutional treasuries are redefining Ethereum's role as a foundational asset according to market analysis.

Institutional Adoption and Ethereum's Structural Advantages

The institutionalization of Ethereum has accelerated in 2025, with corporate treasuries now holding over 5.56 million ETH (4.6% of total supply) and generating staking yields of 3–4%. This shift is driven by Ethereum's dual utility as a settlement layer for real-world assets (RWAs) and its technical upgrades, such as the Pectra and Fusaka upgrades, which enhanced scalability and reduced transaction costs. Regulatory clarity has solidified institutional credibility in Ethereum.

Yi's strategy aligns with this trend. By targeting price dips, his firm aims to reduce the average cost of ETH holdings while capitalizing on Ethereum's staking efficiency. EIP-7251, which allows large institutional holders to consolidate stakes into high-balance validators, has improved capital efficiency, making Ethereum a more attractive option for institutional treasuries compared to alternatives.

Case Studies: Institutional Ethereum Treasuries in Action

BitMine Immersion Technologies exemplifies this institutional shift, holding over 4 million ETH in its treasury and leveraging staking to generate yield. Similarly, SharpLink Gaming (SBET) has secured $2.5 billion in Ethereum holdings, using staking to complement traditional revenue streams. These strategies highlight Ethereum's role as a hybrid asset-offering both speculative upside and income generation.

Yi's approach, however, diverges from balance-sheet-funded purchases. Trend Research, another major Ethereum bull, has employed leveraged DeFi purchases to accumulate ETH during the October 2025 selloff (the "1011 incident"), contrasting with BitMine's conservative treasury model. This diversity in institutional strategies underscores Ethereum's adaptability to varying risk appetites.

Market Sentiment and Bear Market Resilience

Despite a 23% decline in the global crypto market cap since October 2025, Ethereum's institutional adoption has outpaced retail pessimism. The ETH/BTC ratio reached 2025 highs, signaling growing preference for Ethereum-based assets amid uncertainty. Institutional buying, including a $121 million ETH accumulation by a "66k ETH borrow" wallet in November, further reinforces this trend.

Retail sentiment, however, remains bearish, with platforms like Stocktwits reflecting skepticism about Ethereum's $2,960 price point. This divergence highlights the maturation of the crypto market, where institutional confidence in Ethereum's staking yields and RWA infrastructure offsets retail volatility.

Long-Term Vision: Staking as a Strategic Anchor

Yi's bullish outlook hinges on Ethereum's 2026 bull market potential, with price targets of $7,000 reflecting his conviction in the asset's long-term value. His strategy mirrors broader institutional trends: staking not only generates yield but also aligns with Ethereum's role in securing the network. With 29% of the total supply staked as of mid-2025, institutional investors are increasingly viewing Ethereum as a hybrid asset-combining the characteristics of a reserve currency with the productivity of a capital asset.

Regulatory tailwinds further legitimize Ethereum's inclusion in institutional portfolios. As Yi notes, "ETH is still significantly undervalued," and his $10 billion allocation plan reflects a conviction that bear markets are opportunities to compound value through strategic accumulation.

Conclusion

Yi Lihua's Ethereum strategy encapsulates the institutionalization of crypto treasuries, where staking yields, regulatory clarity, and RWA infrastructure create a compelling case for long-term value. While Q4 2025's bearish sentiment persists, the growing dominance of institutional players-armed with liquidity buffers and strategic staking frameworks-suggests Ethereum's resilience. As Yi's $10 billion bet demonstrates, the bear market may be the ideal environment to position for Ethereum's next bull cycle, where institutional adoption and technical innovation converge to redefine digital asset investing.