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Fundstrat co-founder Tom Lee laid out a forceful, policy-driven Ethereum bull thesis in an interview on August 26, arguing {that a} US regulatory pivot, Wall Road’s transfer to on-chain infrastructure, and institutional demand routed by way of public “crypto treasuries” set the stage for a pointy fourth-quarter repricing. “Within the close to time period, you already know, $5,500 ought to be occurring within the subsequent couple of weeks,” Lee stated, including that by 12 months finish ETH “ought to be nearer to $10,000 to $12,000,” with the majority of crypto’s yearly features usually arriving in This fall.
Ethereum’s ‘1971 Second’
The mind behind BitMine’s ETH treasury technique frames 2025 as a structural break akin to the US greenback’s 1971 break from gold. In his view, Washington’s posture has shifted from seeing crypto as a risk to positioning it as an instrument of monetary management. “Within the final 12 months, there’s been a sea change, partly due to the election, the place crypto is now not thought of an enemy… however actually a part of how the US monetary system will get management,” Lee said.
He pointed to stablecoins—“the breakout product, you already know, the chat-GPT second”—the proposed GENIUS Act and what he referred to as the SEC’s “Mission Crypto,” contending these indicators present regulators need “Wall Road to make use of the blockchain to really make America extra progressive and truly unfold America’s monetary affect around the globe.”
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From there, Lee’s thesis facilities on Ethereum because the default institutional settlement layer. “Wall Road doesn’t need the quickest chain… They need a dependable chain that they’ll construct upon. Ethereum has had zero downtime in its complete historical past. So to me, it’s the natural selection.”
Calling Ethereum a “fats protocol,” he argued that worth accrues on the base layer as tokenization and cost rails migrate on-chain. Citing work “from Mosaics and from Fundstrat,” Lee stated that, if the community captures main cost and banking flows, “you get to a community worth of $60,000 worth per ETH” over a 10- to 15-year horizon.
BitMine’s Technique
A considerable a part of the dialog targeted on the public-equity automobile he chairs, Bitmine, which he described as an actively managed Ethereum treasury. Lee contrasted holding spot ETH with proudly owning an organization that makes use of capital markets to broaden ETH per share. “When Bitmine began… there was solely $4 price of Ethereum held per share,” he stated of a July 8 baseline.
“As of August 24, we now have $39.84 price of Ethereum held per share… So the explanation we had a 10x in your holdings is as a result of Bitmine is actively managing to develop your Ethereum held per share through the use of capital markets and attracting the curiosity of institutional buyers.”
He argued that this strategy may be “anti-dilutive” when executed at an fairness premium to web asset worth: “In case your ETH per share goes up, not one of the capital markets is dilution.” Lee added that Bitmine has “a billion-dollar inventory repurchase program in place as a result of if the inventory turns into too low-cost relative to its ETH holdings, it might make extra sense to really purchase again inventory.”
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On technique, Lee outlined an ambition to manage roughly 5% of staked ETH, claiming a “energy legislation” impact as community significance scales. “When you’re a staking entity that owns 5 %, then you might have a optimistic affect on future upgrades… [and] one of the crucial essential vectors for when Wall Road desires to construct on Ethereum,” he stated. With Ethereum’s proof-of-stake mechanics, he asserted that present holdings may generate substantial revenue: “With the $9 billion price of ETH held at the moment, that’s about nearly $300 million of web revenue.”
Tom Lee’s Macro View
Institutional demand, Lee maintained, is lastly rotating towards ETH through regulated wrappers and equities, whilst many giant allocators nonetheless underweight it. “Ethereum continues to be typically not preferred by establishments as a result of most have wager on Bitcoin… that’s why Ethereum might be falling into… probably the most hated rally,” he stated, noting that year-to-date ETH features of 35 % have outpaced Bitcoin’s 17 %.”
Lee’s macro overlay extends past crypto. He reiterated a constructive fairness view contingent on Federal Reserve easing and a cyclical upturn. “If the Fed follows by way of and begins to chop… after which we get a drop in mortgage charges and the ISM turning up and subsequently financials actually start to take part, I feel that’s why we get to six,800 or so on the S&P,” he stated. Whereas acknowledging that “September is the month everybody’s going to be nervous about,” he characterised any pullback as buyable: “Since 2022… that has at all times been a dip shopping for alternative.”
At press time, ETH traded at $4,614.
Featured picture created with DALL.E, chart from TradingView.com