In the latest Ethereum developments, Fundstrat’s Tom Lee says ETH’s next big move will be driven not by crypto-native hype, but by institutional capital that is already active and building on the network.
In Bitmine’s July Chairman’s note, Lee pointed to BlackRock’s BUIDL fund, JPMorgan’s MONY initiative, and Robinhood Chain as clear signs that Wall Street has shifted from watching crypto to actively constructing on Ethereum’s infrastructure. ETH is currently trading near $1,880, about 60% below its 2025 peak around $5,000.
Lee argues this gap reflects a shift in market structure rather than a hard cap on price. Earlier cycles fueled by ICOs, NFTs, ETFs, and stablecoins have matured, and a new phase is emerging—one led by institutions with longer investment horizons and deeper pools of capital.
Institutional Build-Out on Ethereum
Lee’s case centers on major financial players. BlackRock’s BUIDL, a tokenized Treasury fund, has grown to roughly $2.6 billion and earned a top money-market rating from Moody’s.
JPMorgan’s MONY extends the bank’s blockchain strategy that began with Onyx in 2020, adding another institutional-grade product to Ethereum’s ecosystem.
Developer activity reinforces this narrative. Electric Capital data shows nearly 6,000 developers working on the EVM stack, keeping Ethereum ranked as the leading blockchain for new builders—an important signal for institutions assessing long-term platform strength.
Lee contrasts this steady institutional progress with the 2022 bear market, noting that infrastructure development has continued even as ETH prices have fallen sharply from their highs. This disconnect between on-chain growth and market price underpins his thesis.
Robinhood Chain and ETH Utility
Robinhood Chain, launched July 1 on Arbitrum, provides another example. Within two weeks, it became the third-largest network by daily DEX volume, reaching about $811 million and briefly overtaking Ethereum, according to DefiLlama. Ethereum has since reclaimed the lead, and total Robinhood Chain volume has surpassed $1 billion.
Lee highlights the chain’s use of ETH for settlement and fees as a meaningful real-world use case.
However, critics push back. Artemis CEO Jon Ma notes that most of the activity appears driven by meme coin trading rather than institutional flows. In addition, because the chain runs on Arbitrum, it contributes minimal fees to Ethereum’s base layer, limiting its direct impact on ETH demand.
Amazon Comparison and Key Debate
Lee compares Ethereum’s current phase to Amazon’s early years, when the stock traded at low levels for over a decade before surging as its addressable market expanded.
Still, he acknowledges the bearish view. ETH has twice failed to break above $5,000, leading some analysts to argue that this level could cap gains 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 total supply. As a major holder, Lee stands to benefit significantly if his thesis proves correct.
While this does not invalidate his argument, it does provide important context for his bullish outlook.
Outlook
The institutional developments Lee highlights—BlackRock’s BUIDL fund, JPMorgan’s MONY initiative, and Robinhood Chain’s early traction—are all supported by real data.
The key issue is whether these efforts can translate into sustained demand in the secondary market. For ETH to move from $1,880 back toward $5,000 and beyond, institutional participation must evolve from product launches into consistent capital inflows—something that has yet to be demonstrated at scale.
