While Bitcoin has been basking in the spotlight, its younger, more versatile sibling, Ethereum, is quietly preparing for a blockbuster year. The launch of spot Ethereum ETFs has opened the floodgates, but according to Matt Hougan, Chief Investment Officer at Bitwise, we’re only seeing the opening act. He forecasts a staggering $10 billion in net inflows into these funds by the second half of 2025, signaling a pivotal shift in how traditional finance views the world’s leading smart contract platform.
This isn’t just speculative hype; it’s a narrative backed by a powerful new use case that speaks Wall Street’s language: the tokenization of real-world assets.
From Digital Currency to Digital Economy
For years, Ethereum’s story was complex, centered on decentralized finance (DeFi) and NFTs. Now, the pitch is becoming much clearer and far more compelling for institutional portfolios. The core idea is that Ethereum is evolving into the foundational settlement layer for a new digital economy.
As the Ethereum network itself recently stated, “Ethereum is for tokenized stocks.” This vision is rapidly becoming a reality. Imagine owning a digital version of a US stock that can be traded 24/7, settled instantly, and integrated into a vast ecosystem of financial applications. That’s the future Ethereum is building, and major players are taking notice.
Giants from finance and tech, including PayPal, Visa, JP Morgan, and Mastercard, are already building on or integrating with Ethereum’s architecture. The latest major move comes from Robinhood, which announced plans to issue up to 200 US stock and ETF tokens on Arbitrum, a popular Layer-2 network that helps Ethereum scale.
The Money Is Already Flowing
The early data from spot Ethereum ETFs supports this bullish outlook. Inflows have been robust, even in volatile markets.
• BlackRock’s iShares Ethereum Trust (ETHA), a market leader, pulled in $54,8 million in a single day on July 1.
• Last week alone, Ethereum products saw over $429 million in inflows.
This momentum isn’t limited to ETFs. Publicly traded companies are also pivoting. Nasdaq-listed Bit Digital announced a transition from a Bitcoin-focused strategy to an Ethereum-centric one, raising $162,9 million specifically to buy more Ethereum. When public companies start treating ETH like a core treasury asset, it’s a powerful signal to the rest of the market.
Confidence is also being bolstered by key technological advancements like the recent Pectra upgrade, which enhances the network’s efficiency and scalability, assuring investors of its long-term viability.
The New Portfolio Play: Bitcoin and Ethereum
For institutional investors, the conversation is no longer about “if” they should own crypto, but “what” crypto they should own. While Bitcoin has cemented its role as digital gold—a store of value and hedge against inflation—Ethereum offers a different proposition. It’s a productive, yield-bearing asset that functions as the digital infrastructure for the future of finance.
As Hougan notes, Ethereum’s story of real-world utility is becoming a compelling narrative that may soon rival Bitcoin’s for the attention of traditional investors. The potential for future ETF products to include staking rewards would further solidify its appeal as a strategic asset.
The table below shows how crypto-related equities performed ahead of the market open on July 2, 2025.
| Company | At the Close of July 1 | Pre-Market Overview (July 2) |
| MicroStrategy (MSTR) | $373,30 | $381,50 (+2,20%) |
| Coinbase Global (COIN) | $335,33 | $340,68 (+1,60%) |
| Galaxy Digital Holdings (GLXY) | $21,31 | $21,79 (+2,25%) |
| MARA Holdings (MARA) | $15,70 | $16,02 (+2,04%) |
| Riot Platforms (RIOT) | $11,27 | $11,53 (+2,31%) |
| Core Scientific (CORZ) | $17,25 | $17,22 (-0,17%) |
| Source: Google Finance |
As billions of institutional dollars search for their next home, Ethereum’s blend of proven technology and a clear, utility-driven future makes it a prime candidate for explosive growth.
