Vitalik Buterin and the Ethereum Foundation are reportedly working to change Wall Street for Ethereum, to help Bitcoin’s rival gain institutional recognition. With the successful launch of Bitcoin ETFs, BTC has already become a favorite on Wall Street. To achieve similar success to ETH, Buterin reportedly invested in a startup that wants to market Ethereum as the top cryptocurrency on Wall Street.
Vitalik Buterin invests in a startup that promotes Ethereum
Vivek Raman, a former bond trader at Nomura Holdings and UBS Group AG, founded Etherealize, which has received investments from Vitalik Buterin as well as the Ethereum Foundation. This new startup from Raman will market Ether (ETH) to Wall Street as one of the top cryptocurrencies, Bloomberg reported On January 23.
Although it has been called a competitor to BTC, ETH has largely underperformed Bitcoin. While the price of Bitcoin rose 160% past $100,000 levels in the past year, Ethereum only gained 40% during the same period. Apart from just Bitcoin, Ether has also underperformed other altcoins like Solana, XRP, etc.
To fill this gap, Vitalik Buterin and the Foundation are making a payment with Etherealize, with an undisclosed investment amount. Raman revealed that he and his team of eight full-time employees started operations this month in New York.
Their focus is on promoting Ethereum to financial institutions and developing products designed to simplify the usability of the network for banks.
“If there was ever a time when it was going to work, it’s now when all the headwinds that existed in the past are now suddenly tailwinds, from regulation to technology to Ethereum being ready to have an institutional presence.”
Addressing recent criticisms of ether
Ethereum is said to be losing competition to competitors like Solana and other tier-1 blockchains. It was the perfect choice for launching coins last year. Moreover, Solana gained greater recognition after the Trump family launched their TRUMP and MELANIA cryptocurrencies on the blockchain.
The Ethereum Foundation and Vitalik Buterin have been criticized by users for not taking advantage of the network’s first-mover advantage more quickly. In response to criticism, Buterin addressed concerns about X last week, vowing to make “significant changes” to the organization’s structure and purpose.
Raman stressed the need for stronger support for Ethereum and aims to be a prominent voice for the network on Wall Street. An early priority will be tokenization – the process of converting traditional financial products into digital tokens that can be traded on the blockchain. He added:
Financial institutions “want safety, they want security, they want reliability, they want a track record. And the only blockchain network that has stood the test of time and has 10 years of operating history and some regulatory clarity is Ethereum.
Will ETFs help the recovery?
The launch of Bitcoin ETFs in the US, last year in January 2024, provided a major institutional boost to the asset class. Also, with companies like MicroStrategy accumulating Bitcoin over the past four years, BTC has gained more global recognition. Furthermore, with more focus on building US Bitcoin reserves, ETH has taken a back seat for investors so far.
Unlike Bitcoin ETFs, the launch of Ethereum ETFs in July 2024 did not catch up quickly. However, after Donald Trump’s victory in November 2024, inflows into Ethereum ETFs rose again.
Currently, the net inflows across all Ethereum ETFs since their inception stand at $2.725 billion. If Etherealize’s efforts are further realized, we could see strong demand for ETH going forward in 2025. However, the price of ETH also needs to catch up. While stabilizing at around $3,300 levels, ETH is seeing a strong whale build-up that sets the price target for ETH at $4,000.
Bhushan Akolkar
Bhushan is a fintech enthusiast with a deep understanding of the financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he gains. In his spare time, Bhushan enjoys reading erotic fiction and sometimes explores his culinary skills.
Disclaimer: The provided content may include the personal opinion of the author and is subject to the market situation. Conduct market research before investing in cryptocurrencies. The author or publication does not accept any responsibility for your personal financial loss.
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