When ETH broke through 3400 and the ETH/BTC exchange rate broke through the 0.026 resistance, no one expected that ETH could stage a comeback.

At the beginning of the year, ETH was like a derailed high-speed train, soaring and then plunging off a cliff. From the end of 2024 to April 2025, the ETH price dropped from $4000 to $1500, halving and halving again, underperforming BTC, SOL, and even lagging behind a bunch of meme coins.

Just when retail investors were wailing, KOLs were shorting, and institutions were silent, a quieter, more covert script was playing out behind the scenes: a classic shakeout.

The crash was not just a "price adjustment" for ETH but more like a designed, purposeful shakeout.

The price drop from $4000 to $1500 was not to prove ETH's worthlessness but to systematically shake out retail investors who had heavily bought the top in the past two years of the bull market.

As those who had once proudly raised the Ethereum flag began to stop-loss and exit, the ones picking up the pieces were no longer another group of retail investors but rather more silent, disciplined funds: as if a group of Wall Street suits had entered.

They didn't shout "long ETH" on social media, nor did they boldly announce their positions; instead, they quietly accumulated through fundraising in US small-cap companies, market-making accounts, and structured arbitrage funds.

By the time everyone was asking "Is this the bottom," the real accumulation had already been completed.

In hindsight, the crash from $4000 to $1500 was not a signal of decline but more like a transfer of narrative power. Ethereum no longer belongs to KOLs or speculators.

But this time, did Wall Street really take over?

Quietly Stage a Comeback: How Institutions Quietly Boosted ETH

The story of the comeback was already circulating in the first half of the year. After the Hong Kong Summit, rumors of the "Ethereum Underground Parking Lot Comeback" were even more rampant.

At the time, most people's assessment of this was: Retail investors are fond of fantasies.

However, on-chain data had early signs—December 2024 to April 2025 was a phase of free fall in Ethereum's price but also a time when the Herfindahl-Hirschman Index (HHI) quietly turned upwards.

Image Source: Glassnode

The HHI is an indicator of asset concentration, and on the Ethereum chain, it represents the trend of chip ownership. While the price plunges, the HHI is rapidly rising, indicating that ETH is not being widely sold off by the market; instead, it is moving from scattered retail hands to a few large holders or even institutional addresses.

From December 2024 to present, Ethereum's Herfindahl Index has rapidly increased, returning to its 2018 high within 5 months, completing the chip concentration path that took 5 years to traverse. During the same period, ETH's price dropped from $4000 to $1500, indicating that during the downturn, large holders continued to accumulate chips, and the chips were not widely dispersed.

This concentration is conducive to controlling the market and has also amplified ETH's recent volatility. Although the current concentration is still far below historical highs, once the main players start building their positions, they usually do not easily retreat. However, they are more likely to quietly accumulate chips rather than rush to drive up the price.

This is a standard turnover of chips or, to put it more directly, a structural shakeout.

From a sentiment perspective, it looks very much like a late-stage collapse; but from a structural perspective, it resembles more of a reshuffling of main players: quietly accumulating chips at the most hopeless moment and remaining silent during the noisiest times.

This operating style, which we have often seen in A-shares, Hong Kong stocks, or small-cap stocks in the U.S. stock market in the past, has now appeared in ETH.

In retrospect, the process of falling to $1500 appears to be a retail panic on the surface, but it was actually a precisely controlled "pullback zone." Changing ownerships is not always completed before the start of a bull market; sometimes it is hidden in the deep waters of a bear market. Now we realize that the sell-offs based on reasons such as "unapproved ETFs," "narrative collapse," or "ecosystem weakness" are actually part of a deeper script—to drive out weak hands and bring chips back to the core.

By the time we truly realize the change in ownership, ETH has already returned to above $3000. On revisiting the situation, you will understand that this position is not the endpoint but possibly a new starting point—the turning point of ETH's shakeout was quietly completed at $1500.

So how did this group of seemingly Wall Street institutions quietly support ETH's rise?

Image Source: cryptotimes

In May 2025, SharpLink Gaming ($SBET) announced a $425 million PIPE financing round to purchase 176,271 ETH, valued at over $4.6 billion at the time.

On the day of the announcement, the stock price surged by 400%, combining the themes of financing and cryptocurrency assets to ignite the U.S. stock market. This was seen as the first calibration comparable to MSTR's ETH version, officially sparking Wall Street's stock market frenzy for ETH assets.

Initially regarded as a penny stock's passing craze, SBET's surge quickly attracted followers within just a month.

In June, BitMine Immersion Technologies ($BMNR) announced a $250 million PIPE financing round to purchase ETH, explicitly stating a transformation into an "ETH infrastructure asset management firm." Following the announcement, BMNR saw consecutive days of surges, becoming another "ETH concept stock" after SBET.

Differing from SBET, BMNR no longer merely focused on "buy and hold," but explicitly targeted ETH staking rewards, on-chain cash flow, and participation in the DeFi ecosystem. This marked the first time a traditional mining enterprise shifted to a "ETF-like logic" to bullish on ETH, signaling a shift in institutional thinking from directional bets to structural capture.

Almost simultaneously, BTCS ($BTCS) took a different approach. Instead of publicly announcing a large ETH purchase, it emphasized the innovative structure of its financing: a hybrid financing model of "DeFi + TradFi." It didn't just buy ETH; it acquired an asset anchoring liquidity in a stablecoin.

Bit Digital ($BTBT) also quietly disclosed its acquisition of 20,000 ETH, planning to transition from its original BTC mining enterprise to an ETH staking node operator. In this changing landscape, some players from the BTC camp have started to switch sides.

From SBET's initial move to subsequent handovers by BMNR, BTCS, BTBT, and other U.S. stocks and mining enterprises, the entire process took less than a month, progressing rapidly, clearly, and orderly.

Who were the masterminds behind this long-planned "changing of the guard"? Did Wall Street truly pick up the bloodied chips?

The Masterminds Behind the "Changing of the Guard"

Setting aside the fantasy of Wall Street discovering ETH's value, those who carefully read the fundraising announcements of these Ethereum strategic reserve companies may find former ETH believers heaving a long sigh.

Because above, one after another, a familiar name appeared: Pantera Capital, Galaxy Digital, Joseph Lubin, Peter Thiel......

It is these well-known institutions and figures in the crypto circle who, through investment, technical support, and public relations, have elevated Ethereum to a new level of "Wall Street-ification."

Pantera Capital

Pantera Capital is a pioneer in the cryptocurrency investment field. In 2013, Pantera launched the first U.S. institutional investment fund focused on Bitcoin, later expanding to Ethereum and other blockchain projects.

As an early angel investor in Ethereum's initial coin offering (ICO), Pantera bet on its potential back during Ethereum's crowdfunding in 2014, establishing a deep connection with Ethereum.

Pantera's portfolio also includes various projects in Ethereum's DeFi space, such as Uniswap, Aave, Arbitrum, and other fundamental applications on Ethereum.

In May 2025, Pantera once again emphasized Ethereum's central role in stablecoins and DeFi applications in its Blockchain Letter, calling it the "bedrock of the blockchain economy."

At the same time, they launched the DAT Fund, focusing on investing in companies using digital assets as strategic reserves (Digital Asset Treasury Companies, DATs), referring to this model as the new narrative of cryptocurrency exposure through the public markets.

"Digital Asset Treasury (DAT) companies will mimic MSTR, utilizing a publicly listed permanent capital vehicle exposure for investing in digital assets. Following detailed research on the strategy, confidence was built around this investment thesis, and we made concentrated bets."

DAT Companies Invested in by Pantera

Currently, behind the top two strategic reserve companies holding ETH, SharpLink and Bitmine, Pantera's influence can be seen.

In May 2025, Pantera participated in SharpLink's $425 million private equity financing round, co-investing with crypto VCs such as ConsenSys, ParaFi Capital, and Galaxy Digital.

On June 30, 2025, Pantera again participated in BitMine's $250 million private equity financing round, with co-investors including Galaxy Digital and ParaFi Capital, who also co-invested with Pantera.

Galaxy Digital manages an ETH ETF, while ParaFi Capital, like Pantera, has invested in numerous Ethereum DeFi applications including Uniswap and Aave.

Additionally, ParaFi has invested in ConsenSys, the key driver behind SharpLink and a long-time partner of Pantera.

Consensys

Consensys has developed key infrastructure applications for Ethereum such as Metamask, Infura, and Linea. Its founder, Joseph Lubin, is a co-founder of Ethereum whose influence rivals that of Vitalik.

Joseph Lubin not only holds a significant amount of Ethereum but also, after investing in SharpLink, became its Chairman of the Board, holding a 9.9% stake in SBET, making him the largest individual shareholder publicly disclosed.

Prior to Ethereum, Joseph Lubin also worked at Goldman Sachs, positioning him as a bridge between the traditional financial and crypto worlds.

In addition to ConsenSys and Pantera, the Ethereum whales from the ICO era, another crypto giant, Founders Fund, has set its sights on the Ethereum strategic reserve track.

Founders Fund

Founded by Silicon Valley and crypto legend Peter Thiel, Founders Fund invested $200 million in cryptocurrency in 2023, purchasing 58,824 ETH for $100 million at an average price of $1,700.

Founders Fund is also an investor in Polymarket, Ondo Finance, and several other Ethereum-based star projects.

Founders Fund also participated in BitMine's $250 million private equity financing, holding 9.1% of its shares (5,094,000 shares).

BitMine currently holds over 163,000 ETH, worth about $500 million, and Founders Fund's investment is equivalent to indirectly holding about 14,853 ETH through Bitmine.

While completing the strategic Ethereum reserve private placement, Bitmine announced the appointment of Tom Lee as the new Chairman of the Board.

Tom Lee

Tom Lee was a well-known Wall Street market strategist. From 1999 to 2014, he served as the Chief Equity Strategist at J.P. Morgan Chase & Co., being consistently ranked as a top analyst by institutional investors every year since 1998.

In 2014, Lee left J.P. Morgan and co-founded Fundstrat, providing stock research and advisory services to institutional investors, pension funds, family offices, and high-net-worth individuals.

Meanwhile, Lee is also a frequent guest in financial media, often appearing on programs such as CNBC, Fox Business, and Bloomberg, analyzing the cryptocurrency and stock markets.

Since 2017, Lee has been publicly bullish on Bitcoin and has predicted that the price of Ethereum will reach $5,000-6,000 by 2024.

Today, this crypto-friendly Wall Street figure seems to have become the "pump mouth" of the Ethereum strategic reserve narrative, loudly advocating for ETH on mainstream financial media such as CNBC, claiming that Ethereum is the underlying infrastructure for stablecoins and boldly predicting:

"When banks like Goldman Sachs and JPMorgan issue stablecoins on Ethereum, they will want to stake more Ethereum to secure it and achieve this by establishing an Ethereum strategic reserve."

Lee's background in traditional finance and stock analysis, along with his good relationship with mainstream financial media, indeed make him very suitable for the role of "shilling" the Ethereum strategic reserve.

The Chair of Primitive Ventures, Dovey Wan, also expressed positive views on Ethereum's Strategic Reserve Model on X:

「The Ethereum Strategic Reserve is not just about companies buying ETH; it is an experiment in trust and financial architecture. The SharpLink model (stock premium → more ETH → larger flywheel effect) demonstrates how Ethereum is bridging the gap to institutional investment through publicly traded companies.」

It is worth noting that Primitive Ventures previously announced its support for SharpLink.

Dovey Wan herself also serves on the CoinDesk Advisory Board, and CoinDesk was acquired by Bullish on November 20, 2023, with one of Bullish's investors being Founders Fund.

These highly intertwined names create a different narrative surrounding the Ethereum Strategic Reserve compared to MicroStrategy's original act of independently purchasing Bitcoin as an outsider to the industry.

This is not a bottom-up price discovery but a top-down repackaging.

Ethereum Core Circle Conspiracy

The rise of Ethereum Strategic Reserve companies, from organization, initiation, to dissemination, every step behind the scenes was meticulously planned by Ethereum OGs and whales.

These crypto institutions and key figures not only hold a significant amount of Ethereum, but also have deeply intertwined relationships with each other and have made substantial investments in Ethereum's infrastructure and DeFi-related projects.

It can be said that it is the core capital behind ETH that has driven this narrative of the ETH Strategic Reserve and its 「pump」.

They are leveraging traditional capital market tools to access DeFi returns on-chain, attempting to create a new flywheel for Ethereum and sell this story to the mainstream financial sector.

Whether these OG players were once part of Ethereum's 「old pump」 is unknown, but these Strategic Reserve companies have indeed quickly become the 「new pump」 of ETH.

Ethereum Strategic Reserve Companies: The 「New Pump」 of ETH

As of data up to July 14, there are already over 50 Ethereum Strategic Reserve companies in the market, holding ETH with a total value exceeding $4 billion, accounting for over 1% of the total circulating ETH supply.

According to data from the Strategic ETH Reserve, among the top 11 Ethereum institutional holdings, 4 are Ethereum Strategic Reserve companies.

These companies hold over 40% of the Ethereum held by the top 10 institutions, more than twice the amount held by the Ethereum Foundation, and over nine times that of the U.S. government.

Furthermore, the 30-day performance of these strategic reserve companies far exceeds that of established crypto projects like Lido and giants like Coinbase exchange.

BTCS has also announced last night that it has been included in the Russell Microcap Index.

Has the "Changing of the Guard" Altered ETH's Fundamentals?

Seemingly influenced by the Ethereum Strategic Reserve narrative, ETH has shown unusually strong price action in recent days.

But has Ethereum's fundamental outlook truly changed?

This is the most controversial question in this round of power transition. Supporters argue that ETH has just been unjustly penalized by sentiment, with a clear technical roadmap and a stable economic model, moving towards becoming the global settlement layer; while bears mock its loss of vitality, users, and imagination, claiming it has extinguished across DeFi, NFTs, and L2.

However, if you detach from the emotional aspect, you will find: Ethereum's on-chain structure and economic foundation have not collapsed. What has truly changed is the narrative around ETH—it is no longer just an asset hyped by narrative but a financial instrument that Wall Street can use for structured products.

On-chain, Ethereum's supply-demand structure remains robust. EIP-1559 continues to be in effect, leading to a gradual supply reduction of ETH; the staking ratio is steadily increasing, with over a quarter of the circulating supply locked in the mainnet or LRT structures, providing a solid foundation for network security and endowing ETH with properties akin to an "on-chain treasury bond."

The scaling roadmap is clear, with EIP-4844 now live, Rollup costs continually decreasing, and while the L2 developer ecosystem may lack enthusiasm, the infrastructure is still progressing.

Image Source: the block

However, under the layer-one, ETH's narrator is undergoing a change. Over the past few years, Ethereum's narrative has been driven by Key Opinion Leaders (KOLs), VCs, and DeFi protocols, those who built a growth curve based on imagination and market euphoria. But since the narrative of LSD extinguished in 2024, the NFT sector quieted down, and L2 scaling stalled, the market has grown weary of ETH's "future story."

VCs can no longer pitch new PPTs, retail investors are drawn away by memes, and Ethereum suddenly lost its reason for price appreciation.

However, just as retail investors became weary of memes and their confidence was dampened by rugged rug pulls, Ethereum's OGs swapped out the microphone for ETH with a narrative more in line with traditional financial logic.

ETH's price appreciation logic has been transformed into: can it be packaged as a structured note, can it generate a 6% APY on-chain stable yield, can it become a layer of quasi-sovereign assets in a "TradFi Portfolio."

Among them, BTCS's approach is particularly typical: this established US-listed Web3 company announced in June 2025 that it would issue up to $1 billion through an S-3 filing, with the funds being used to increase its ETH holdings, expand node operations, and manage on-chain yield.

BTCS proposed a "DeFi + TradFi Hybrid Structure" flywheel model:

Using a certain leverage ratio, utilizing a publicly traded company for ATM and convertible bond financing, purchasing ETH, then using ETH as collateral base, combining on-chain lending, node staking rewards, MEV extraction, and even future integration with the Builder ecosystem to construct a stable cash flow model.

In their hands, ETH is not a speculative target but a financial instrument that can be repeatedly discounted, a part of institutional financial models.

This narrative switch fundamentally aligns with the logic of traditional financial institutions.

In this sense, ETH has not changed; what has changed is its audience and narrative style. The old consensus is withering away, but the new financial pricing narrative is slowly taking root.

From Consensus to Conspiracy, ETH's Script Feels Familiar

In the past, when we talked about ETH, we focused on technical iterations, narrative shifts, and the strength of consensus.

But today, what truly determines ETH's next fate is no longer the "storytellers" but the "structure writers."

After all, crypto cannot only be about memes, Ponzi schemes, and games; the narrative of blockchain's application value and decentralized finance must continue to be told in order to truly be discovered by mainstream financial value.

SBET, BMNR, BTCS, BTBT... Behind these quietly-entered US stock companies are Ethereum's most OG investors and whales, who are also the most familiar with the "traditional financial game."

They know that once a digital asset can be standardized, structured, and integrated into traditional portfolios, its price will be redefined.

When Joseph Lubin, Tom Lee start appearing on mainstream financial media such as CNBC, deeply intertwining Ethereum's potential with the stablecoin narrative; when Pantera and Peter Thiel start publicly disclosing their Ethereum strategic reserve holdings:

Crypto giants and Ethereum whales are now marketing Ethereum's "new story" to Wall Street and more traditional financial institutions.

In hindsight, Ethereum's "changing of the guard" process is actually very typical: emotional panic, retail exodus, followed by the main players using PIPE financing, the "on-chain staking revenue model," and "US stock secondary market hype" to take over and build positions.

This is not a Web3 native story, but rather a complete set of familiar TradFi script reproductions: channeling assets, structuring narratives, and commodifying volatility.

And ETH is also transitioning from a consensus asset to a conspiracy asset. Consensus is retail's self-identification in the community; while conspiracy is the silent handover behind institutional structured trading.

All of this is a sign that after the main players have completed their "portfolio reshuffle," they begin to "control the board."

In the end, we will discover that the foundation of ETH has not changed, the chain is still running, the code is still being updated, and the largest holders are still the same group of people. But who is talking about it, who is pairing with it, the narrative driving ETH's rise, the audience it is targeting, have all changed.

Behind the mask of Wall Street's face, those reaching out to manipulate are still the familiar old sickles.

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