Is Vitalik linking Ethereum to Wall Street?

To encourage institutional investors on Wall Street to adopt Ether, Vitalik Buterin and the Ethereum Foundation invested in Etherealize.

Highlights

To assist the Bitcoin rival acquire institutional credibility, Vitalik Buterin and the Ethereum Foundation are allegedly working on a Wall Street makeover of Ethereum. Since the successful introduction of Bitcoin ETFs, BTC has already emerged as the preferred option on Wall Street. Buterin apparently invested in a firm that aims to promote Ether as the top cryptocurrency for Wall Street in an attempt to achieve a similar success for ETH.

Vitalik Buterin Invests in a Startup That Encourages Ethereum

Etherealize was founded by Vivek Raman, a former bond trader at Nomura Holdings and UBS Group AG. Vitalik Buterin and the Ethereum Foundation have invested in the company. According to a January 23 Bloomberg story, this new Raman business will promote Ether (ETH) as one of the top cryptocurrencies on Wall Street.

ETH has significantly outperformed Bitcoin while being referred to as a BTC rival. Last year, the price of Bitcoin jumped 160%, surpassing $100K, but the price of Ethereum only increased 40%. In addition to Bitcoin, Ether has performed worse than other well-known altcoins like Solana, XRP, and others.

Vitalik Buterin and the Foundation are working with Etherealize to bridge this gap, with an undisclosed funding sum. Raman disclosed that he and his staff of eight full-time workers began operations in New York this month.

Their main goals are to market Ethereum to financial institutions and provide technologies that make the network easier for banks to use.

Resolving the Latest Ether Criticism

According to reports, rivals like Solana and other layer-1 blockchains are outperforming Ethereum. Last year, it was the preferred option for meme coin launches. Additionally, since the Trump family introduced its TRUMP and MELANIA meme coins on the blockchain, Solana has gained additional notoriety.

Users have criticized Vitalik Buterin and the Ethereum Foundation for failing to take use of the network’s first-mover advantage sooner. Buterin responded to the criticism on X last week, promising “significant changes” to the foundation’s goal and structure.

Will Recovery Be Aided by Ether ETFs?

The asset class received a significant institutional boost last year in January 2024 with the introduction of Bitcoin ETFs in the US. Additionally, Bitcoin has become even more well-known worldwide as a result of corporate players like MicroStrategy amassing Bitcoins during the previous four years. Furthermore, investors are currently less interested in ETH due to a stronger emphasis on increasing US Bitcoin holdings.

The July 2024 debut of Ether ETFs didn’t catch on as quickly as Bitcoin ETFs. However, inflows into spot Ethereum ETFs have increased once more since Donald Trump’s victory in November 2024.

FAQ

What is the main goal of Vitalik Buterin's investment in Etherealize?

Vitalik Buterin and the Ethereum Foundation aim to establish Ethereum as the top blockchain for Wall Street by encouraging institutional investors to adopt Ether (ETH). Etherealize is working to market Ethereum to financial institutions and make the network more accessible for banks.

How does Etherealize plan to bridge the gap between Ethereum and Wall Street?

Etherealize, founded by former bond trader Vivek Raman, plans to market Ethereum to financial institutions and develop technologies that make Ethereum easier for banks and other financial players to use.

Why is Ethereum facing criticism despite its popularity?

Ethereum has been criticized for not capitalizing on its first-mover advantage, especially as competitors like Solana gain traction for hosting meme coins and other blockchain projects. Additionally, Ethereum’s growth in price has lagged behind Bitcoin and other altcoins.

What role do ETFs play in Ethereum's strategy for institutional adoption?

Ether ETFs, launched in mid-2024, have gained traction recently and are seen as a way to boost Ethereum’s credibility among institutional investors. While Bitcoin ETFs have had more immediate success, Ethereum ETFs are gaining momentum, particularly after political shifts like Donald Trump’s election victory in November 2024.

What are the expected "significant changes" Vitalik Buterin has promised?

In response to user feedback about missed opportunities, Vitalik Buterin has pledged to make major adjustments to the Ethereum Foundation’s goals and structure to enhance its appeal and relevance in the competitive blockchain space.