ETH rose to $4200, making Vitalik Buterin a billionaire.
Ethereum ETFs are rapidly growing as institutional investors have gathered 5.43 million ETH.
Changes in U.S. policy are boosting confidence in cryptocurrencies due to new legislation supporting blockchain.
ETH has surpassed the $4K mark, reaching a peak of $4800, with potential for $8K.
The strong rise of Ethereum above $4200 has once again made co-founder Vitalik Buterin a network billionaire. The assets in his public wallet now exceed $1.03 billion, a direct result of ETH's weekly growth of 22%, causing the network's market capitalization to once again exceed $510 billion. The growth is attributed to what seems to be a perfect storm of three tailwinds for Ethereum.
Tailwind #1:
Institutional gateways are open for ETH.
More than 5.43 million ETH have already been gathered in spot ETFs on Ethereum, driven by growing confidence among institutional investors. These ETFs may soon offer stable returns if regulators approve them, increasing their attractiveness.
Alongside ETFs, corporate treasury bonds of Ethereum are gaining traction. Public companies like Bitmine, GameSquare, and BTC are currently purchasing ETH to bolster their balances. According to Standard Chartered, these treasury holders have already acquired 1% of the total Ethereum supply since June and could eventually control up to 10%.
Tailwind #2:
Washington surprisingly supports cryptocurrency.
Regulatory sentiment in Washington, D.C. has also notably shifted in favor of cryptocurrencies. President Trump recently signed the GENIUS Stablecoin Act, the first major cryptocurrency legislation in the U.S.
The House of Representatives has also introduced bills against CBDC and the Clarity Act, aimed at clarifying the oversight between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). These bills are currently under consideration in the Senate, while a new presidential directive has opened up the possibility for 401(k)s to invest in cryptocurrency.
This series of positive events expands the ETH investor base, adding another source of capital inflow to Ethereum.
Tailwind #3:
ETH is set for a major technical breakthrough.
Finally, the price chart indicates a bullish trend. Market analyst Megs notes that Ethereum has surpassed the $4000 mark on the fourth attempt, reaching $4200 — the highest level in this cycle.
This move came after a series of higher lows reached since hitting the bottom in 2022, aided by an upward trendline.
A decade in the making. This financial milestone follows a decade of technical success. Here's our report on Ethereum's 10th anniversary.