As BTC enters the U.S. strategic reserves, market investors' interest in crypto assets is shifting from Bitcoin to Ethereum. The price of Bitcoin is too high, akin to BTC being a 100 yuan note, while ETH is a 10 yuan note, making ETH's strategic reserves a trend.


Based on Ethereum's performance on July 11, more institutions have participated in Ethereum's strategic reserves, slowly accumulating and stockpiling, which will make Ethereum a scarce commodity. According to economic principles, when a commodity becomes scarce and there are still many enthusiasts in the market, the price will inevitably rise.


Why are large institutions participating in Ethereum's strategic reserves?


1. Recently, the Stablecoin Beautiful Act was passed, and the concept of stablecoins is flourishing. Many smart contracts on Ethereum are the core vehicles for global stablecoins such as Tether and USDC, as well as decentralized finance.

2. Future BTC will tend to be more stable, with the market leadership being replaced by the second-largest player, ETH. Additionally, the high price of BTC will shift market investment demand from BTC to ETH, becoming a haven and appreciation opportunity for large funds.


3. Ethereum's undervaluation, compared to Bitcoin's market value of 400 billion versus 2 trillion, still has a 400% appreciation potential. Its annual staking returns and legal compliance have gained recognition from Wall Street capital.