Why Ethereum Still Fascinates Financial Institutions

A former BlackRock executive has just thrown a wrench in the works. For him, Ethereum will not be just another blockchain. This network will actually become the digital backbone of all global finance. A bold vision as crypto has just lost a key support at 3,600 dollars. 

Wall Street bets everything on Ethereum despite the storm

Joseph Chalom does not mince words. The former head of digital assets at BlackRock has just delivered a prediction as bold as it is clear: “Ethereum will not only be a blockchain, but the digital infrastructure of Wall Street.” A strong statement while ETH is going through a turbulent zone, oscillating around 3,558 dollars after losing a key support.

Numbers speak for themselves. Now co-CEO of Sharplink, a digital asset management company, Chalom has placed more than 3 billion dollars in Ethereum. Even better, he plans to stake most of these holdings to generate passive income. With an average annual yield of 3% through staking, Ether offers institutions a unique advantage: combining security and profitability.

This confidence is not isolated. JPMorgan recently invested 102 million dollars in Bitmine, a company holding over 3 million ETH. The American bank thus bypasses direct crypto purchases while gaining massive exposure to Ethereum. A strong signal showing that big financial institutions are now betting on the long term, beyond the daily market swings.

Chalom’s journey at BlackRock speaks for itself. He oversaw the Aladdin platform and led strategic partnerships with Circle and Securitize. His footprint is also found in the resounding success of the BlackRock launched Bitcoin spot ETF (IBIT). 

For him, Ethereum already hosts the majority of stablecoins, tokenized assets, and smart contracts in circulation. “In the long run, we will no longer talk about DeFi or TradFi. We will simply talk about finance, and its infrastructure will be Ethereum“, he assures.

Short-term volatility facing structural potential

Traders remain cautious. Analyst Ted Pillows warns of a possible drop to 3,300 dollars. Ethereum’s chart structure shows signs of weakness after failing to stay above the 3,600-3,700 dollar range. If this support level breaks, ETH could hit a new monthly low.

Yet fundamentals tell another story. Financial institutions massively rely on the Ethereum ecosystem for its trust, liquidity, and security. 

The blockchain hosts billions of dollars in stablecoins and is becoming the favorite playground for real asset tokenization. Traditional banks, long reluctant, are gradually switching to this technology.

The staking model changes the game. Unlike Bitcoin, Ethereum offers a regular yield to its holders. This feature attracts institutional investors seeking stable income. 

For Sharplink and other major players, this is a decisive argument. The possibility to generate returns while securing the network makes Ether a unique hybrid asset.

Analysts acknowledge that current volatility could continue, especially if Bitcoin keeps trading sideways. But they also point out that once the storm passes, Ethereum’s fundamental position in global finance will be a solid base for a rebound.

In short, Wall Street no longer sees Ethereum as a risky experiment, but as the backbone of its digital transformation. The current market turbulence does not change this long-term vision. It remains to be seen whether retail investors will follow the trend before institutions capture the bulk of strategic positions.