Market trends can be interesting to say the least. What individuals (and entities) pile into is the major guessing game that speculators play.
When it comes to crypto, the same bet was always Bitcoin. As a matter of fact, it still is. History has shown that using a HODL approach has paid off handsomely. The leading crypto-asset has outperformed every other asset class in a spectacular way.
Hence, we not only have safe but a speculators dream. Certainly, there is a lot of volatility so we are talking about a long term approach.
This was complimented by the rollout of Bitcoin products, most notably Spot ETFs, in the United States. Over the last 18 months, the money rolling in has exploded. Blackrock's Bitcoin ETF is now its 3rd largest with the firm breaking the 700 BTC mark.
Many feel the future of Bitcoin is bright. But what about Ethereum? Here is another coin that is gaining some attention.
In this article we will look at a growing trend that puts Ethereum center stage.
Growing Trend: The Push Away From Bitcoin Into Ethereum
Will Ethereum outperform Bitcoin? There is no way to tell and I am not going to speculate on the price action of either coin.
What I can say is we are seeing some moves that should enhance Ethereum, at least from a market perspective.
The first involves the swapping of Bitcoin into Ethereum. This was just done completely by Bit Digital, a Bitcoin mining company. It just completed a public equity offering of $172 million along with the same of 280 BTC. The company purchased 100,603 ETH.
Why would a company do this?
To start, this is a mining company so we could look at this as a way to diversify the avenues it goes. The company, if successful, will keep mining more BTC. However, it appears the goal is to sell that for ETH.
“We believe Ethereum has the ability to rewrite the entire financial system,” said CEO Sam Tabar in a statement, citing Ethereum’s programmability, staking yield, and broader adoption as the foundation for Bit Digital’s long-term strategy. “We are starting with exposure to over 100K ETH for now but we intend to aggressively add more so we become the preeminent ETH holding company in the world.”
Naturally, this viewpoint is highly contested. Many do not believe Ethereum will be the chain that accomplishes that. With others such as Solana gaining traction, some feel Ethereum's time passed.
Markets do not necessarily follow fundamentals. In spite of the competition, setbacks, and headwinds for the network, Ethereum remains the number 2 crypto behind Bitcoin. The future could see this change or market activity could cement it there for the rest of the decade.
ETH "Strategy"
Much of the publicity surrounding Bitcoin in 2025 centers on the idea of putting the coin in government and corporate treasuries. This is something that started with Michael Saylor and has ascended to the White House.
Could this be the next wave for Ethereum?
Fundstats Tom Lee, a long time crypto advocate, joined Bitmine Immersion Technologies as Chairman. This is another mining company, albeit a much smaller operation than some of its counterparts.
Here we see another Bitcoin mining firm moving to ETH as the holding on its balance sheet.
The company also announced a $250 million private placement to implement a buying strategy around ether, which it aims to make its primary treasury reserve asset while continuing with its core bitcoin mining business.
Like Sam Tabar, Lee sees a great deal of potential in the Ethereum network as the financial system evolves along the crypto lines.
"The financial services industry and crypto are converging and it really started with stablecoins, which is the ChatGPT of crypto because it's viral adoption by consumers, business banks and now even Visa," he told CNBC's "Squawk Box" Monday. "Underneath the stablecoin industry is Ethereum – that is really the backbone and architecture of stablecoins so it's important to create a project that accumulates Ethereum to essentially protect and have some influence on the network."
Ethereum does differ from Bitcoin in the max supply. BTC is eventually capped at 21 million while ETH is unlimited. Both are disinflationary coins with the rate of inflation slowing down over time.
Does the "strategy" approach mean a wave of utility for Ethereum? The network itself requires some work as scaling remains an issue. This is something, however, the core developers believe will be resolved in 2026.
If that is the case, and we see fees dropping, Lee's assessment of stablecoin activity could mean a major boom for Ethereum.
To front run this, we could see some companies adopting this approach. Will that mean more sell their BTC for ETH? It could be a situation where some look to hedge by balancing out the treasury a bit.
Is this part of a growing trend?
The contents of this article are for informational purposes only. None of this should be considered financial advice.