Ethereum Embraced by Finance Giants as BlackRock, JPMorgan Build on ETH, Says Tom Lee

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 and actively building on the network.

In Bitmine’s July Chairman’s update, Lee pointed to BlackRock’s BUIDL fund, JPMorgan’s MONY platform, and Robinhood Chain as clear proof that Wall Street has shifted from observing crypto to constructing on Ethereum’s infrastructure. ETH is currently trading around $1,880, roughly 60% below its 2025 peak near $5,000.

Lee argues that this gap reflects a shift in market regime rather than a structural ceiling. Earlier cycles powered by ICOs, NFTs, ETFs, and stablecoins have matured, giving way to a new phase led by institutions with longer investment horizons and deeper capital reserves.

Institutional Build-Out Gains Momentum

Lee’s thesis is backed by major financial institutions. BlackRock’s BUIDL, a tokenized Treasury fund, has grown to approximately $2.6 billion and earned a top-tier money-market rating from Moody’s.

JPMorgan’s MONY extends its blockchain strategy that began with the Onyx platform in 2020, adding another institutional-grade product to Ethereum’s ecosystem.

Developer activity further reinforces the case. Data from Electric Capital shows nearly 6,000 developers building on the Ethereum Virtual Machine (EVM), keeping Ethereum ranked first among blockchains for new builder activity—an important metric for institutions assessing long-term viability.

Lee contrasts this continued infrastructure expansion with the 2022 bear market, noting that development has persisted even as ETH prices have fallen sharply from their highs. This divergence between strong on-chain growth and weaker price performance forms the core of his argument.

Robinhood Chain and ETH’s Role

Robinhood Chain, launched July 1 on Arbitrum, adds another layer to the institutional narrative. Within two weeks, it became the third-largest network by daily decentralized exchange (DEX) volume at around $811 million, briefly surpassing Ethereum, according to DefiLlama. Ethereum has since regained its lead, and cumulative volume on Robinhood Chain has exceeded $1 billion.

Lee views the chain’s use of ETH for settlement and fees as a meaningful real-world application.

However, critics highlight key limitations. Artemis CEO Jon Ma notes that much of the activity is driven by meme coin trading rather than institutional participation. 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 Comparison and Key Debate

Lee compares Ethereum’s current phase to Amazon’s early trajectory, when the stock traded at low levels for years before surging as its addressable market expanded.

At the same time, he acknowledges the bearish case. ETH has failed twice to break above $5,000, leading some analysts 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, roughly 4.8% of total supply. As a major holder, Lee stands to benefit significantly 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 grounded in verifiable data.

The key question is whether these initiatives can translate into sustained secondary market demand. 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.