Why Ethereum still fascinates financial institutions so much

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

Wall Street is betting everything on Ethereum despite the storm

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

The numbers speak for themselves. Now co-CEO of Sharplink, a digital asset management company, Chalom has invested more than $3 billion in Ethereum. Better yet, he plans to stake the majority of these holdings to generate passive income. With an average annual return of 3% thanks to staking, Ether offers institutions a unique advantage: combining security and profitability.

This confidence is not isolated. JPMorgan recently invested $102 million in Bitmine, a company holding over 3 million ETH. The American bank thus circumvents the direct purchase of cryptos while gaining massive exposure to Ethereum. A strong signal which shows that large financial institutions are now banking on the long term, beyond the daily ups and downs of the market.

Chalom's journey at BlackRock speaks for itself. He oversaw the Aladdin platform and led strategic partnerships with Circle and Securitize. Its imprint can also be seen in the resounding success of the Bitcoin spot ETF (IBIT) launched by BlackRock.

For him, Ethereum already hosts the majority of stablecoins, tokenized assets and smart contracts in circulation. “ Ultimately, 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 versus structural potential

Traders remain cautious. Analyst Ted Pillows warns of a possible fall towards $3,300. Ethereum's chart structure is showing signs of weakness after its failure to hold above the $3,600-$3,700 zone. If this support level gives way, ETH could reach a new monthly low.

Yet the fundamentals tell a different story. Financial institutions rely heavily on the Ethereum ecosystem for its trust, liquidity, and security.

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

The staking model is a game changer. Unlike Bitcoin, Ethereum offers a regular return to its holders. This characteristic attracts institutional investors looking for stable income.

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

Analysts acknowledge that the current volatility could be prolonged, especially if bitcoin continues to move sideways. But they also emphasize that once the storm passes, Ethereum's fundamental position in global finance will provide a solid foundation for rebounding.

In short, Wall Street no longer views 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 individual investors will be able to follow suit before institutions monopolize most of the strategic positions.