Ethereum attracts institutional capital and reinforces its role as a foundation for innovation
- Ethereum drives innovation in stablecoins and tokenization
- Ethereum ETFs see $815 million inflows
- Ethereum establishes itself as a decentralized financial infrastructure
Ethereum is emerging as a central player in the transition of cryptocurrencies from speculation to practical application in the global financial infrastructure, according to a report by Bernstein. Growing institutional interest shows that assets like ether (ETH) are being seen as more than just speculative crypto assets, especially in the context of stablecoins and tokenization.
Bernstein analysts led by Gautam Chhugani noted that despite Bitcoin’s dominance as a “store of value,” Ethereum has been gaining ground by offering real functionality through its blockchain. “Some investors still draw the line between blockchain (useful technology) and crypto (‘useless’)… [but] Ethereum ‘deserves love,’” they said.
Bernstein: Ethereum leading shift from speculation to financial innovation
Bernstein analysts say the current crypto cycle is moving beyond Bitcoin's $ BTC “store of value” role toward blockchain-based financial innovation, with Ethereum $ ETH at the center, according to…
— CoinNess Global (@CoinnessGL) June 9, 2025
The launch of spot Bitcoin ETFs in the U.S. has generated over $120 billion in assets under management since January 2024. In comparison, Ethereum ETFs, which launched last July, have accumulated $9 billion in AUM. However, ether trades at a significantly smaller market cap — $300 billion compared to Bitcoin’s $2,1 trillion.
Despite this, Ethereum has a dominant position in the stablecoin and tokenization sectors, with widespread adoption by projects such as Coinbase's stablecoin payments pilot on the Base network (Layer 2), Robinhood's entry into tokenized assets, and Kraken's initiative to list tokenized U.S. stocks for investors outside the country.
“This is the stage where cryptocurrencies make the leap from speculative token markets to blockchain-driven financial innovation,” the analysts wrote. The research highlights that in the last 20 days, ETH ETFs have seen inflows of $815 million, with the net balance for the year reaching $658 million.
Chhugani emphasizes that companies like Visa, Mastercard and Stripe are already developing solutions with stablecoins, which validates the usefulness of public blockchains like Ethereum. “If you believe in innovation in payments based on stablecoins, why is the Ethereum network, which mints stablecoins and processes transactions with stablecoins, worthless?” he asked.
For Bernstein analysts, the market is beginning to realize this value, and this has been directly reflected in capital flows to Ethereum ETFs.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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