Analysts say institutional adoption could be key for Ethereum’s next move

Zach Friedman, co-founder and Chief Strategy Officer (CSO) at Secure Digital Markets, advised Ether investors to look for the token’s institutional integration, as that would determine its future price fluctuations. The analyst emphasized that ETH ETFs are now experiencing significant inflows, and major banks are accepting ETH as collateral for loans. 

Friedman said Ethereum’s role in real-world finance has continued to strengthen, thanks to the surge in Layer 2 (L2) expansions, the growth of stablecoins, and tokenization. He added that these trends could set the stage for skyrocketing ETH prices into 2026, with supply remaining deflationary and yields from staking encouraging long-term holding.

Cryptopolitan reported earlier this month that ETH is rapidly attracting institutional investments. Major minting events, such as the recent $2 billion USDT minted on Ethereum, typically precede price movements as retail and institutional investors inject new liquidity.

Friedman says fringe digital assets are becoming mainstream

The analyst believes that ETH is rising because cryptocurrencies, once viewed as fringe assets, are now becoming more mainstream. He also stressed that crypto, which was driven by retail investor, is now benefiting from steadily increasing institutional interest. 

Cyprien Grau, lead at zkEVM rollup Status Network, previously said ETH’s institutional adoption is a net positive because it carries the cryptocurrency’s value out of the crypto-native bubble and into the real-world economy. He explained that what institutions want aligns with Ethereum’s endgame, which includes credible neutrality, faster settlements, privacy, lower fees, decentralization, and scale. 

“They do not want to settle on each other’s private ledgers. They want a credibly neutral ground where everyone can transact under the same rules. Trying to steer core protocol governance would put those properties at risk, so the dominant strategy is cooperation, not capture.” 

–Cyprien Grau, head at the Status Network

Crypto analyst and YouTuber Wendy O also contributed her opinion, saying that the most positive aspect of ETH is that spot and future ETFs have been approved. However, she pointed out that this did not seem to move Ethereum as the market had expected, as sentiment remained down. 

Brian Huang, the co-founder of Glider, also claimed that the crypto investor mindset has taken a hit lately, especially after many speculators suffered losses due to the closure of leverage positions on October 10. Wendy O believes that crypto has been in a “crab market” since the crypto liquidation occurred. 

However, SoSoValue data show that U.S. spot Ethereum ETPs (exchange-traded products) have notably increased in value since their debut last year. The data further reveal that ETH ETFs have doubled in value since the beginning of this year, reaching over $26.5 billion, primarily due to growing interest from institutional investors.  

Tychey says Ethereum is the biggest economic playground

Jerome de Tychey, president of Ethereum France and CEO of Cometh, claims Ethereum is the biggest economic playground, and investors should not be worried when institutions join the fun. He also believes that Ethereum has been consistent on the neutral transport narrative, and institutions not choosing ETH directly are only delaying the inevitable. The Ethereum France President emphasized that such institutions will eventually pick on ETH due to the network’s censorship resistance and radical neutrality.

The co-founder and Ceo of SSV Labs, Alon Muroch, also says fears that institutions could pose a threat to Ethereum are unfounded. He pointed out that even the largest consortia would be unable to influence ETH’s future because they would pose no threat to either Ethereum or its decentralization. Murdoch added that big-name L2s, such as Robinhood, will still be built and settled on the Ethereum network, which is ultimately beneficial for the ecosystem. 

Strategic ETH Reserve data shows that the total amount of ETH held on corporate balance sheets exceeds 5.9 million. Tom Lee-backed BitMine Immersion leads with over 3 million ETH in its stockpile, while Sharplink, chaired by Joseph Lubin, is second with more than 840,000 ETH. Meanwhile, staking on the Ethereum network keeps hitting ATHs with over 35.7 million ETH (~$138B) currently locked in staking contracts.

However, another analyst at Seal 911 Pcaversaccio believes institutional adoption is Ethereum’s biggest threat. The analyst warns that TradiFi could tame the network’s open, cypherpunk spirit. Meanwhile, Grau believes institutions should build on L2s if they want more control and customization. He explains that L2s retain EVM composability and tooling, inherit Ethereum’s liquidity and security, and allow institutions to design their policy and execution rules.

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