Ethereum Set to Soar as Institutional Investment and Stablecoin Legalization Drive Market Growth
On July 21, Bernstein analysts highlighted Ethereum’s continued prominence in the evolving financial landscape, driven by growing institutional interest in stablecoins and asset tokenization. The report underscores that major asset managers, including BlackRock, are poised to increase Ethereum allocations within their portfolios, signaling robust institutional demand. Additionally, banks and fintech firms are anticipated to acquire ETH to facilitate transaction fee payments on the Ethereum blockchain, reinforcing its utility in real-world applications.
Bernstein’s analysis also noted the recent enactment of the GENIUS Act by the U.S. President, which formally recognizes stablecoins as legal digital cash. Given Ethereum’s role as the primary infrastructure supporting stablecoins, this legislative milestone is expected to catalyze further adoption. Reflecting this shift, ETH has appreciated approximately 45% over the last two weeks, marking a significant departure from typical cryptocurrency volatility.
The analysts emphasize that this trend represents the onset of a sustained blockchain financial services cycle, rather than a transient market surge, positioning Ethereum as a foundational asset in the digital finance ecosystem.