Wall Street Just Chose Ethereum OVER Bitcoin

Ethereum ETF Surge vs. Bitcoin Outflows [0:00]

• In July, U.S. spot Ethereum ETFs saw inflows of $365 million, while U.S. spot Bitcoin ETFs attracted only $172 million.
• This follows record Bitcoin ETF outflows of $2.4 billion in May and $4.5 billion in June.

  "In July, U.S. spot Ethereum ETFs pulled in $365 million. In that same month, U.S. spot Bitcoin ETFs managed only $172 million."

The Rise of Ethereum Treasury Staking [0:49]

• Corporate treasuries have shifted from solely holding scarce assets like Bitcoin to actively accumulating and staking Ethereum.
• 67 companies now hold over 8.2 million ETH, with a significant portion actively staked to generate yield.

  "But that's not the case for ETH. And in the first half of 2026, something shifted in the market. Corporate treasuries replaced ETFs as the main engine of ETH accumulation."

Bitmine's Staking Model [1:27]

• Bitmine, a leading Ethereum treasury company, stakes over 87% of its nearly 5.8 million ETH holdings.
• This staked amount generates an estimated 134,800 ETH annually, with projected annualized rewards between $250-$290 million.

  "And Tom Lee is more than happy to remind the public at any given opportunity that, fully deployed, the projected stake in rewards is $291 million on an annualized basis."

Wall Street's Infrastructure for Staked ETH [3:39]

• Major custodians like BNY Mellon are enabling institutional clients to earn Ethereum staking rewards without the assets leaving the bank.
• BlackRock's staked Ethereum product, ETHB, passes through 82% of gross staking rewards to holders.

  "On the 4th of August, BNY wired native staking rewards directly into its digital asset custody platform, working with Galaxy."

BlackRock Adjusts for Institutional Trading [4:45]

• BlackRock announced a 1-for-3 reverse split for its ETH A product, effectively reducing trading costs for institutional desks.
• This adjustment signals a focus on attracting large-volume institutional traders who are sensitive to even small basis point differences.

  "BlackRock is adjusting ETH A for the people who trade in massive blocks."

The EIP-8361 Debate: Yield vs. Decentralization [7:07]

• Proposed update EIP-8361, the tapered issuance burn, aims to reduce net issuance as staking approaches a saturation point, potentially lowering baseline yield from 2.6% to 1.1-1.2%.
• This proposal faces significant pushback from DeFi protocols and companies reliant on current yield levels, highlighting a conflict between network developers and institutional capital.

  "This proposal introduces a saturation balance of about 60.25 million ETH, roughly half the supply."

Institutional Views on Bitcoin vs. Ethereum [5:54]

• Research suggests Bitcoin is viewed as a reserve asset and sovereign hedge, while Ethereum is seen as programmable financial infrastructure.
• Institutions are increasingly seeking separate assets for storing value and moving value, with Ethereum gaining traction for the latter.

  "Bitcoin gets written up as the reserve asset, the sovereign hedge, the $21 million cap, the thing that you hold. Ethereum gets presented as programmable financial infrastructure, valued on fee generation, tokenized assets, and stablecoin settlement, the things that you use."

Key Metrics to Watch Post-EIP-8361 [9:35]

• The validator entry queue (currently around 2.5 million ETH) and exit queue are critical indicators of institutional sentiment.
• Any response from ETF issuers or treasury companies regarding EIP-8361 will be significant, as none have formally commented yet.

  "First, there's the validator entry queue, currently around 2.5 million ETH and a 43-day wait, down from 2.9 million in early July."