In the latest Ethereum update, Fundstrat’s Tom Lee says the next major move in ETH will be driven less by retail speculation and more by institutional capital that is already being deployed on the network.
In Bitmine’s July Chairman’s message, Lee pointed to BlackRock’s BUIDL fund, JPMorgan’s MONY platform, and Robinhood Chain as clear indicators that Wall Street has moved beyond observation and is now actively building on Ethereum. ETH is currently trading around $1,880, roughly 60% below its 2025 peak near $5,000.
Lee argues this gap reflects a shift in market dynamics rather than a hard ceiling on price. Earlier cycles powered by ICOs, NFTs, ETFs, and stablecoins have matured, and a new phase is emerging—one shaped by institutions with longer investment horizons and significantly larger capital bases.
Institutional Expansion on Ethereum
Lee’s thesis is anchored in major financial players. BlackRock’s BUIDL, a tokenized Treasury fund, has grown to approximately $2.6 billion and received a top-tier money-market rating from Moody’s.
JPMorgan’s MONY builds on its earlier blockchain initiative, Onyx, launched in 2020, further advancing its tokenization strategy within Ethereum’s ecosystem.
Developer activity adds to the narrative. Electric Capital data shows nearly 6,000 developers working on the Ethereum Virtual Machine (EVM), keeping Ethereum ranked as the leading blockchain for new builders—an important signal for institutions evaluating long-term platform viability.
Lee contrasts this continued infrastructure growth with the 2022 bear market, noting that institutional development has progressed even as ETH prices declined sharply. This divergence between strong on-chain activity and weaker price performance is central to his argument.
Robinhood Chain and ETH’s Role
Robinhood Chain, launched on July 1 using Arbitrum, offers another example of expanding infrastructure. Within two weeks, it ranked third in daily decentralized exchange (DEX) volume at around $811 million, briefly surpassing Ethereum, according to DefiLlama. Ethereum has since regained the lead, and cumulative volume on Robinhood Chain has exceeded $1 billion.
Lee views its use of ETH for settlement and fees as a meaningful application of the asset.
However, critics highlight limitations. Artemis CEO Jon Ma notes that much of the activity is driven by meme coin trading rather than institutional flows. Additionally, because the chain operates on Arbitrum, it contributes minimal fees back to Ethereum’s base layer, limiting its direct impact on ETH demand.
Amazon Analogy and Key Tensions
Lee compares Ethereum’s current position to Amazon’s early trajectory, when the stock traded at low levels for years before surging as its market expanded.
At the same time, he acknowledges bearish concerns. ETH has failed twice to break above $5,000, leading some to argue that this level 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, about 4.8% of total supply. As a significant holder, Lee stands to benefit if institutional adoption drives prices higher.
While this does not invalidate his thesis, it provides important context for his outlook.
Outlook
The institutional developments Lee highlights—BlackRock’s BUIDL fund, JPMorgan’s MONY platform, and Robinhood Chain’s early growth—are all grounded in real data.
The key question is whether these initiatives can translate into sustained demand in the secondary market. For ETH to recover from $1,880 toward $5,000 and beyond, institutional participation must move beyond initial product launches into consistent capital inflows—something that has yet to be proven at scale.
