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Ethereum could soar to $15k in a bull market and to between $10k and $12k in more conservative conditions by the end of 2025, according to Fundstrat CIO and Bitmine Immersion Technologies Chairman Tom Lee.
In a joint analysis with Fundstrat’s Head of Digital Asset Research Sean Farrell, Lee called Ethereum “the biggest macro trade over the next 10–15 years,” predicting it will play a central role in bringing Wall Street onto the blockchain.
In his most bullish scenario, Lee said ETH could reach between $12k and as high as $15k. That’s almost double the recent forecast of $7.5k by year end made by Standard Chartered that was based on growing institutional adoption.
Lee Has Skin In The Game
Lee’s Bitmine Immersion Technologies has amassed 1.2 million ETH that’s worth about $5.42 billion, making it the largest corporate holder of the altcoin.
It plans to raise an additional $20 billion through an expanded stock offering to buy more as Lee aims to become ETH’s Michael Saylor with the largest corporate acquisition of the asset so far.
According to a filing on Tuesday, BitMine has expanded its at-the-market (ATM) stock offering, which allows it to sell shares gradually at prevailing market prices, from about $4.9 billion to $24.5 billion, a fivefold increase, with all proceeds expected to go toward ETH purchases.
The next biggest ETH treasury firm is Sharplink Gaming, which is assisted by Ethereum co-founder Joe Lubin and holds 598.8K coins valued at $2.82 billion.
Ethereum Will Play A Major Role In Bringing Institutions On-Chain, Says Fundstrat
Lee and Farrell believe that Wall Street “is moving onto the blockchain, spurred by the Genius act and by SEC’s project crypto.”
They added that the “majority of stablecoins and Wall Street projects” are being built on the Ethereum blockchain as well. If this is the case, Ethereum is perfectly positioned to benefit from the eightfold increase Standard Chartered predicts the stablecoin market will have undergone by the end of 2028.
Ethereum’s on-chain activity aligns with Lee and Farrell’s analysis. According to Nansen, the number of daily transactions on the blockchain is nearing its all-time high. On Aug. 13, the figure topped 1.76 million, with the record standing at about 1.948 million transactions.
Number of daily transactions on Ethereum (Source: Nansen)
In addition to that, the number of active addresses on the Ethereum blockchain jumped over 6% in the last 24 hours.
While Ethereum does face competition from faster and cheaper competitors such as Solana and Avalanche, it still enjoys a first-mover advantage.
DefiLlama data shows Ethereum holds 60.88% of the Total Value Locked (TVL) in the DeFi space worth approximately $96.483 billion.
ETH Bests BTC In YTD Gains
Lee and his colleague also highlighted how ETH has outperformed Bitcoin (BTC) in year-to-date (YTD) gains, with ETH up 28% and BTC only up 18%
More recently, ETH also surged over 23% in the last week, while Bitcoin’s price only rose 4% during the same period.
As of 7:52 a.m. EST, Ethereum trades at $4,7171.29, placing it within 4% of its all-time high (ATH) of $4,788.55 that it set on Nov. 16, 2021.
While ETH closes in on its record peak, Lee and Farrell believe that there is “still plenty of upside” for the altcoin. In the report, they noted that the latest BofA Fund Manager survey found that only 9% of fund managers own crypto, compared to 48% who own gold.
To position themselves to capitalize on that potential upside, Fundstrat said that it has formally added ETH to its “Mag7 & Bitcoin” fund.
Ethereum ETFs Outpace Bitcoin Funds In Inflows
It’s not just YTD performances that show ETH has an upper hand over the crypto king. ETH ETF inflows in the past week also suggest institutional investors are favoring the altcoin over the pioneer.
Farside data shows over $310 million has been added to US spot Bitcoin ETFs this week, while more than $2.2 billion flowed into the ETH funds during the same period.
ETH ETFs are also on a 7-day inflows streak, while the BTC ETFs extended their streak to 6 days after yesterday’s trading session.
BlackRock’s ETHA has been the ETF of choice for investors lately. After helping the funds top $1 billion in collective net daily inflows on Monday with $639.8 million entering its reserves on the day, more than $800 million continued to flow into ETHA in the subsequent 48 hours.
ETHA also clocked 105.9K ETH inflows on Aug. 13, marking the seventh day of over 100K ETH accumulation since the fund’s inception. That’s not the only record the ETF notched. It also saw $3 billion in trading volumes on the same day.
The asset manager’s spot Bitcoin ETF (IBIT), however, has seen a reversal from its dominant trend. While the product still leads in terms of cumulative inflows, it didn’t record any new inflows on Aug. 13.
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