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- Tom Lee projects a long-term upside for both Bitcoin and Ethereum, viewing ETH as a new monetary base.
- Bitmine Immersion aims to acquire 5% of Ethereum’s supply, establishing itself as a major digital asset treasury.
- Institutional adoption of crypto treasuries signals a merging path between traditional finance and blockchain economies.
In an in-depth discussion with ARK Invest, Bitmine Chairman Tom Lee outlined a bold vision for Bitcoin and Ethereum. He described Bitcoin as the digital form of gold and Ethereum as a monetary base for future financial systems.
The gist of his talk revolved around Ethereum’s ability to maintain value in the event of an evolution of transaction layers. Lee stated, “Ethereum’s design enables it to work similarly to a monetary standard.”
Just as the global economy relies on the dollar, decentralized applications and financial instruments might soon rely on ETH. He likened the shift to what happened in 1971 when products in the Wall Street economy led to more dollar usage, establishing the dollar supremacy even without the gold standard.
Bitmine Immersion Expands Into Global Ethereum Treasury
Bitmine Immersion has quickly escalated from being a small-scale mining firm to an international digital asset vault.Shortly after, they were able to accumulate more than 2.8 million ETH worth more than $13 billion. According to Lee, their target is to hold approximately 5% of the Ethereum supply. Analysts attribute the allocation level to befits the Ethereum network.
Research by Fundstrat and Standard Chartered shows that even with twice the target, the ecosystem remains decentralized with multiple decentralized treasuries. There are close to 70 DATs distributed across the globe, with their overall liquidation helping in ensuring the market structure of Ethereum.
Bitmine is also one of the largest publicly traded companies in the US in terms of market capitalization, continuing to grow its footprint in staking and treasury. Its 2.8% staking reward yield ensures steady revenue streams, and being part of mainstream market indexes is also piquing institutional investor interest.
Institutional Investors Gain Crypto Access
The entrance of Bitmine and MicroStrategy into the major market indexes represents a paradigm shift. Index funds, which were tracking the Russell 1000, will have to include or exclude investments in the crypto-linked stocks. This represents capital from the conventional economy entering the digital economy with known entities.
Lee’s explanation with reference to the banking industry points out the paradigm shift. Contrary to conventional banking, wherein they borrow short and lend long, the digital asset treasury holds reserves for an extended period in crypto and offers liquid shares.
The increasing mainstreaming of firms such as Bitmine, Circle, and Bullish means that the crypto economy is maturing. These firms, by offering bridges between decentralized networks and regulated markets, show how the world of company finance is changing in a tokenized world.
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