Ethereum Gains Wall Street Status as BlackRock and JPMorgan Expand, Says Tom Lee

In the latest Ethereum update, Fundstrat’s Tom Lee argues that ETH’s next major move will be driven less by retail speculation and more by institutional capital that is already active and building on the network.

In Bitmine’s July Chairman’s message, Lee highlighted BlackRock’s BUIDL fund, JPMorgan’s MONY initiative, and Robinhood Chain as clear signs that Wall Street has shifted from observing crypto to actively developing on Ethereum’s infrastructure. ETH is currently trading near $1,880, roughly 60% below its 2025 high close to $5,000.

According to Lee, this gap reflects a transition in market dynamics rather than a hard ceiling on price. He suggests that earlier cycles driven by ICOs, NFTs, ETFs, and stablecoins have matured, and that institutional players now entering the space represent a more stable, long-term source of demand with significantly larger capital reserves.

Institutional Momentum Behind Ethereum

Lee’s thesis is backed by major financial institutions. BlackRock’s BUIDL fund, a tokenized U.S. Treasury product, has grown to around $2.6 billion and has received a top money-market rating from Moody’s.

JPMorgan’s MONY builds on its earlier blockchain efforts, including the Onyx platform launched in 2020, further expanding its tokenization strategy within Ethereum’s ecosystem.

Developer activity also supports the case. Data from Electric Capital shows nearly 6,000 developers working on the Ethereum Virtual Machine (EVM), placing Ethereum at the top among blockchain networks for new builder activity—an important factor for institutions assessing long-term viability.

Lee contrasts this ongoing institutional development with the crypto bear market of 2022, noting that infrastructure growth has continued even as ETH prices have declined sharply from their highs. This divergence between strong on-chain development and weaker market pricing forms the core of his argument.

Robinhood Chain and ETH’s Role

Robinhood Chain, launched on July 1 using Arbitrum, adds another layer to the institutional narrative. Within two weeks, it ranked third among all networks in daily decentralized exchange (DEX) volume, reaching approximately $811 million and briefly surpassing Ethereum, according to DefiLlama. Ethereum has since regained its lead, while Robinhood Chain’s cumulative volume has exceeded $1 billion.

Lee points to Robinhood Chain’s use of ETH for settlement and fees as a meaningful real-world application of the asset.

However, critics highlight limitations. Artemis CEO Jon Ma notes that much of the activity appears driven by meme coin trading rather than institutional participation. Additionally, because the chain operates on Arbitrum, the fees paid back to Ethereum’s base layer remain minimal, meaning high activity does not directly translate into increased ETH demand or fee burn.

The Amazon Comparison and Key Risks

Lee compares Ethereum’s current position to Amazon’s early years, noting that the stock traded at low levels for over a decade before surging as its market opportunity expanded. He suggests a similar long-term growth trajectory could apply to ETH.

At the same time, he acknowledges bearish concerns. ETH has twice failed to break above the $5,000 level, leading some analysts to argue that this range could cap upside in the current cycle.

There is also a clear conflict of interest. Bitmine’s latest disclosure shows holdings of 5.77 million ETH, roughly 4.8% of the total supply. As a major stakeholder, Lee stands to benefit significantly if institutional adoption drives prices higher.

While this does not invalidate his argument, it does add context to his bullish outlook.

Outlook

The institutional developments Lee references—BlackRock’s rated BUIDL fund, JPMorgan’s MONY initiative, and Robinhood Chain’s rapid growth—are all grounded in real data.

The key question is whether these efforts can translate into sustained secondary market demand. For ETH to recover from $1,880 back toward $5,000 and beyond, institutional participation must move beyond product launches into consistent capital inflows—something that has yet to be proven at scale.

About The Author