Bernstein named a new driver for the rise of Ethereum

Analysts at Bernstein named two factors for the rise in the price of Ethereum by 55% over the past 30 days: record inflows into spot ETFs and the emergence of a new class of investors.

Companies have started to form corporate reserves in the second largest cryptocurrency by market capitalization, in order to generate income from staking.

According to Bernstein's estimates, companies like SharpLink Gaming, BitMine Immersion, Bit Digital, and BTCS acquired about 876,000 ETH in July. Their combined share of the total asset supply reached 0.9%. They are attracting capital in public markets and from private investors.

Total volume of ETH on corporate balances. Source: Strategic ETH Reserve.Corporate holders of Ethereum can earn staking yields, which currently stand at around 3% per annum. This is a key difference from Bitcoin reserves, where network fees go to miners rather than to coin holders. According to analysts' calculations, an Ethereum treasury worth $1 billion can generate between $30 million to $50 million in annual income.

Unlike liquid Bitcoin reserves, ETH treasuries face delays in withdrawing coins from staking that can last several days.

Bernstein warned that companies must also consider the risks of smart contracts in DeFi and when using restaking through platforms like EigenLayer. The success of such firms depends on conservative balance and risk management.

Institutional Demand and Strategic Goals

Corporate purchases are taking place against the backdrop of the rise of spot ETH-ETFs. Since the beginning of the year, inflows into them have amounted to $6.7 billion, while assets under management have reached $20.7 billion.

Analysts noted that companies view Ethereum as a strategic asset due to its role in the stablecoin and tokenization of real assets sectors. More than 50% of the supply of "stablecoins" pegged to the US dollar circulates on the Ethereum network.

According to Bernstein, these factors along with the mechanism of burning fees may contribute to the rise in the value of the asset as the usage of the network increases.

The Fall of BitMine Stocks

BitMine shares (BMNR) fell nearly 27%, despite the presentation of plans to accumulate Ethereum. The speech by FundStrat's Tom Lee did not convince shareholders.

10/18
We asked several research firms to give us "replacement" value ( of Wall Street) to value ETH

— this is for illustrative purposes only — implied value for ETH is $60,000 — ETH currently ~$3,800 pic.twitter.com/mXa5uCZukv

— Bitmine BMNR (@BitMNR) July 28, 2025

The company launched a monthly series The Chairman’s Message to highlight its crypto strategy. Li spoke about plans to hold and stake 5% of the total supply of Ethereum. On one of the slides, the company projected a rise in the price of ETH to $60,000, citing unnamed research firms.

However, the market reacted negatively. BMNR fell by 11% during the trading session and another 15% in the post-market.

Source: Google Finance. This contrasts with the recent rise. After the announcement of the purchase of Ethereum, the quotes soared by more than 3000%, reaching an annual high of $135.

During his speech, Li confirmed that BitMine owns 600,000 ETH worth over $2.2 billion.

He stated that in the long term, the company intends to become an "American validator network" with 100% operations in the USA. According to him, the firm aims to become a participant in the Ethereum community to strengthen the ecosystem.

SharpLink and the Race of Corporate Treasuries

SharpLink Chairman Joseph Lubin stated the company's intention to rapidly increase reserves in Ethereum. He believes that the firm will be able to accumulate ETH per share faster than any other project.

According to Lyubin, SharpLink buys cryptocurrency daily through market placements. At the same time, the company stakes its existing assets to earn additional income.

Lubin noted that SharpLink adheres to a conservative approach to risks. The company does not use leverage but is considering issuing convertible bonds — a method that Strategy used to replenish bitcoin reserves.

Currently, BitMine leads the treasury race with 566,800 ETH, while SharpLink holds the second place with 360,800 ETH.

Source: Strategic ETH Reserve. The trend is seen as an active driver of demand for cryptocurrency, contributing to its rise. Over the past month, the price of ETH has increased by 56.9%, according to CoinGecko.

Analyst Wilson Ye referred to what is happening as "institutional FOMO." In his opinion, major players are rushing to take dominant positions ahead of the possible approval of spot ETFs, which will create even more demand pressure.

The institutional ETH accumulation race is heating up 🥷

Bitmine just crossed a major threshold — their ETH holdings now exceed 560,000 tokens, valued at over $2 billion. This massive position breaks their previous tie with Sharplink and positions them as a serious contender for…

— Wilson Ye 🥷 (@wilsonye2025) July 28, 2025

Let us remind you that Santiment experts pointed out a troubling signal for Ethereum — a surge in mentions of the cryptocurrency on social media. The indicator has reached a level of "extreme euphoria," signaling a risk of correction.