Wall Street's $9 Billion Ether Hoard Is Just the Beginning
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What's driving this sudden corporate accumulation? Ether's supply mechanics could be part of the answer. Unlike Bitcoin, Ethereum's fee-burning mechanism means supply can shrink over time. Add staking yields, growing use cases, and institutional access via ETFs like BlackRock's ETHA, and the flywheel starts spinning. ETHA, now at $16 billion AUM, is already seeking approval to enable stakingpotentially unlocking dividend-like returns for mainstream investors. If Ethereum becomes the base layer for everything from tokenized assets to AI settlements, the demand for ETH may surge while supply contracts. That's the structural bull case treasury buyers are leaning into.
Still, the path forward isn't without friction. Solana and other blockchains are moving faster and cheaper. Circle and Stripe are building their own closed systems, which could sideline Ethereum's shared-infrastructure model. And there's a risk that these treasury buyerswho are being cheered as long-term hodlersmight turn into forced sellers in the next downturn. Joseph Lubin, Ethereum's co-founder, acknowledges it's now a race to lock supply before others do. Analysts like those at Standard Chartered are taking notice, lifting their year-end target to $7,500. But the real test? Whether these buyers hold through the next bear marketor vanish when the music stops.
This article first appeared on GuruFocus.
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