Ethereum News Today: Wall Street Firms Pile $9 Billion Into Ethereum Amid AI and Institutional Hype

Wall Street firms are increasingly allocating billions of dollars into Ethereum, betting on its potential to become the backbone of future financial infrastructure driven by artificial intelligence and institutional adoption. Companies such as BitMine Immersion Technologies and Sharplink Gaming have amassed over $6 billion and $3 billion in Ether, respectively, adopting a corporate treasury strategy inspired by Michael Saylor’s Bitcoin accumulation model at Strategy Inc. [1]

The surge in Ethereum holdings is part of a broader trend where major financial institutions are viewing the blockchain as more than a speculative asset. Ethereum’s programmable blockchain supports smart contracts—automated agreements that can process transactions without traditional intermediaries—making it a flexible platform for future financial applications. Unlike Bitcoin, which primarily functions as a store of value, Ethereum is seen as a versatile infrastructure for decentralized finance and AI-driven systems. [1]

Tom Lee, chairman of BitMine, emphasized Ethereum’s role as the “convergence point of Wall Street and AI” during a recent presentation at the NextFin NYC event. He argued that corporate treasuries are no longer simply hoarding Ether; instead, they are building businesses around its technological capabilities. This marks a significant shift from earlier speculative investment strategies to long-term, infrastructure-focused commitments. [1]

Ethereum’s price has surged approximately 75% since June, reaching near all-time highs, driven by institutional demand and supply-reduction tactics. Joe Lubin, co-founder of Ethereum, described the current market as a “race” to lock up Ether and improve its supply-demand fundamentals. By reducing circulating supply, proponents believe they can enhance Ether’s value proposition over time. [1]

The strategy mirrors Michael Saylor’s Bitcoin accumulation model, with BitMine’s holdings representing roughly 1% of Ethereum’s circulating supply. Tom Lee has projected that Ether’s price could reach $60,000 if Wall Street institutions fully embrace Ethereum-based projects, though this forecast is speculative and remains untested in a full market cycle. [1]

Joseph Chalom, co-CEO of Sharplink Gaming and a former BlackRock executive, highlighted the investment thesis during a Bloomberg Television appearance. He referenced Saylor’s success with Bitcoin treasuries and explained how a corporate ETH strategy can create additional value for shareholders. Chalom also noted that BlackRock’s Ether ETF, trading under the ticker ETHA, has grown to $16 billion in assets under management within a year of its launch. [1]

Despite growing institutional interest, Ethereum faces significant competition from faster and cheaper blockchain networks like Solana. Additionally, major financial firms are developing private blockchain solutions that could bypass Ethereum entirely. Companies such as Stripe and Circle Internet Group are investing in proprietary infrastructure to reduce fees and retain user activity in-house, posing long-term risks to Ethereum’s market dominance. [1]

Critics have warned that corporate treasury strategies are not without risk, particularly during market downturns. Omid Malekan, an adjunct professor at Columbia Business School, pointed out that while crypto treasury companies are often seen as perpetual buyers, there are scenarios—especially during bear markets—where they might begin selling to raise liquidity. This could undermine the scarcity-driven price model that underpins Ethereum’s value proposition. [1]

Supporters of Ethereum, however, argue that its economics favor long-term holders. The network has low token issuance and permanently burns transaction fees, which can shrink supply over time. If corporate treasuries continue to lock up large amounts of Ether, this scarcity effect could be amplified. However, the same mechanism could also lead to increased selling pressure during market corrections. [1]

Political and institutional support for Ethereum continues to grow. World Liberty Financial, a decentralized finance venture linked to Donald Trump’s network, disclosed millions of dollars in Ether purchases this year. Standard Chartered and Ark Investment Management have both raised their price targets for Ether, reflecting a broader shift in sentiment among traditional financial institutions. [1]

Tomasz Stańczak, executive director of the Ethereum Foundation, stated that financial institutions now see Ethereum as a natural evolution for financial systems. He emphasized that these institutions understand the product development roadmap and efficiency gains that Ethereum can offer. [1]

While mainstream adoption of Ethereum remains limited to trading and tokenization experiments, early adoption by AI firms, payment companies, and major banks suggests broader integration is on the horizon. The success of the corporate treasury strategy will ultimately depend on whether these firms continue to hold Ether through market volatility and whether Ethereum can transition from a speculative asset to a foundational financial infrastructure. [1]

Source: [1] Wall Street Firms Pour Billions Into Ethereum Ahead of AI Convergence (https://coinmarketcap.com/community/articles/68a465f6b1c6d25ff1efd233/)