A. CLARITY Act of the U.S.
B. Institutional purchases of BTC and ETH.
C. Ethereum and its ecosystem.
D. Conclusion.
• A) CLARITY Act of the U.S.
First, it is important to note that in the United States this year the Republican Party came to power, which demonstrated its solid support for the cryptocurrency sector during the 2024 presidential campaigns, to the point that on their official page they published: “The Republicans will end the illegal and anti-American offensive against cryptocurrencies by the Democrats and will oppose the creation of a central bank digital currency.” Trump himself stated: “I will ensure that the future of cryptocurrencies and Bitcoin is made in the U.S.”, “We want all remaining Bitcoins to be printed in the United States!” and “Our country must be a leader in this field. There is no second place!”. Currently, they are gradually fulfilling their campaign promises, among them they created a strategic reserve of Bitcoin for the country and are building a friendly regulatory environment for the sector. Among the most relevant points, the CLARITY Act (Digital Asset Market Clarity Act) is currently in process; this is the first comprehensive federal law for digital assets in the U.S.
The law seeks to end the regulatory mess surrounding cryptocurrencies in the United States, providing them with a pro-crypto framework. It has bipartisan support, but with a wide Republican majority; in the House of Representatives (a step prior to the Senate), almost 100% of Republicans voted in favor along with approximately 40% of Democrats.
In the past, the Biden administration attacked this sector, which meant the regulatory risk was very high, preventing large-scale institutional investments in this market. This new regulatory certainty will eliminate that risk, making it so relevant in the medium to long term. Projects will know exactly what requirements they must meet, and institutional investors will be able to operate with clear and permanent rules. In general terms, the regulation will provide legal security for the entire ecosystem.
One of the most important points touched by the law is that it will not group all these assets under the same legal concept, but rather classify them into two categories: 1) Digital Commodities: Truly decentralized and autonomous cryptos like Bitcoin and Ethereum, and 2) Digital Securities (Digital Asset Securities): Tokens whose evolution depends on the work of a centralized company or promoter. It will also define a transparent and rigorous process for any other cryptocurrency (for example, Solana or XRP) to be classified as a Digital Commodity, provided it meets the required technical standards.
Furthermore, for the first time in history, U.S. banks and financial companies will be authorized to operate with cryptocurrencies as part of their normal financial activities, allowing them to offer services such as custody, trading, and loans linked to these digital assets. This regulatory opening will facilitate the entry of traditional institutions into the crypto market, increasing liquidity, stability, and significantly boosting institutional adoption.
Tim Scott, Chairman of the Senate Committee on Banking, Housing and Urban Affairs, anticipated that a vote on the law by the Senate would take place by the end of September.
Additionally, there are two other relevant pro-crypto laws: GENIUS and Anti-CBDC. The former revolves around regulation favoring stablecoins, that is, crypto dollars like USDT or USDC. This has already been approved by both Houses and signed by Trump. On the other hand, Anti-CBDC focuses on prohibiting the creation of a digital currency issued by the U.S. Government. It has just passed to the Senate like CLARITY.
The three laws, along with internal SEC and CFTC regulations, will form the new pro-crypto regulatory core in the United States, establishing a clear, competitive, and prosperous legal framework for the coming years.
• B) Institutional purchases of BTC and ETH.
Last year, despite the Democrats still being in power, the largest investment funds in the world such as Blackrock and Fidelity managed to have Bitcoin and Ethereum start trading on Wall Street through financial instruments called ETFs. Thanks to this, for the first time these cryptos could be bought on the stock market, just like buying shares of Apple. This opened the doors for both assets to have new institutional demand that they did not have before since they could only be purchased on exchanges (cryptocurrency banks like Binance) or privately. Let's delve into each case.
- 1) Bitcoin.
This accompanying chart represents the price of Bitcoin (white line) vs. the amount of BTC purchased by investment funds (green area).
As you can see, concerning the green area, from 2021 to 2024 it remained completely flat, with no demand, but after BTC began trading on Wall Street, it started to increase constantly along with its price. There are several triggers that caused the increase in Bitcoin's value, and one of the most important is this.
Investment funds like Blackrock (the one that manages the most money in the world) began explaining to their clients what Bitcoin is and how it works, that is, they educated their investor community; it was mainly conveyed that it is the new digital gold. This caused BTC to evolve conceptually in the eyes of institutions from being a cryptocurrency for internet users to a long-term store of value.
The CEO of BlackRock, Larry Fink, made statements such as: “Bitcoin is digital gold”, “Bitcoin is legitimate, it is a legitimate financial instrument”, and “Tokens are the next generation for markets”.
As of July 18, 2025, investment funds on Wall Street hold 1,317,000 Bitcoins, approximately 7% of all circulating BTC. The price of BTC at the time of writing this article is approximately $120,000, which means this amount represents $158 billion USD. Besides this total absorbed by Wall Street, there are also Bitcoin treasuries held by governments and companies totaling 1,400,000 BTC ($168 billion USD).
If you want to delve into Bitcoin and its ETFs, I recommend reading the last article I wrote about the subject, on October 15, 2023, before Bitcoin effectively made it to Wall Street. The price of Bitcoin at that time was $27,000:
- 2. Ethereum.
ETH is a very different case from BTC. They are not the same, nor are they programmed in the same way. But aside from their significant technological differences, I want to focus on their differences in the eyes of institutions: Bitcoin is digital gold and Ethereum is going to be a digital bond.
This distinction arises because Ethereum has something that Bitcoin does not: staking. Through this, annual yields can be generated in ETH, in other words, it functions like a fixed term in pesos, but in ETH. You deposit your Ethereum with the possibility of accessing an annual return in the same cryptocurrency. This way, you can generate profits without the need to sell the original stock. This is really profitable if you are dealing with large sums like institutional investors. The annual interest is variable, ranging between 3% - 4% in ETH, but in USD, it can be a higher percentage of profit if you sell at good prices the ETH you earn from interest.
Why did I write “is going to be” and not “is”? Because although ETH started trading on Wall Street in July 2024, in that context, the Democratic Party's attack on the crypto sector continued, resulting in the SEC (the body that regulates ETFs on Wall Street) considering the staking service as a possible UNregistered security, causing if the ETF contained this service, it might not be approved. The issuers preferred to sacrifice the yield to get the green light. All management companies, from BlackRock to Fidelity, removed the staking clause from their forms and managed to get the SEC to authorize listings quickly, but without this service which is the key differentiator between Bitcoin and Ethereum.
Everything changed since the Republican Party won the elections in November 2024. Here I present the same chart as before, but for ETH. The white line represents its price, and the green area the amount of ETH purchased by investment funds.
As you can see, regarding the green area, from 2021 until November 2024, it remained completely flat, without demand, but after Trump won the election, the demand for ETH began to rise. The Republican Party winning the elections represented a future friendly regulation for cryptocurrencies.
It was only in May of this year that the SEC, now composed of pro-crypto officials due to the change in government, recognized staking in PoS blockchain networks (e.g., Ethereum's) as an activity NOT subject to securities registration, clearing the main legal obstacle for custodians, brokers, and Wall Street ETFs to offer ETH yield to their clients.
Although this has already been generally authorized, there is still a specific approval needed for the staking service in the ETFs that trade on the stock market. The next deadline for the SEC to authorize this is at the end of October; it is estimated they are waiting for the CLARITY Act to take effect at the end of September.
This new regulation has also impacted institutional demand; in the chart, you can see how it increased from May onwards (green area). Furthermore, only now, in mid-July, did its ETF have a record of weekly purchases through Wall Street, with more than $2.1 billion of ETH bought in just one week.
Specifically, as of July 18, 2025, investment funds on Wall Street hold 4,991,000 ETH, approximately 4% of all circulating ETH. The price of Ethereum at the time of writing this article is $3,500, making this amount represent $17.5 billion USD.
In addition to this total absorbed by Wall Street, there are also private companies that have created ETH treasuries to start offering this service, but through their shares. In other words, you buy shares in a company that primarily holds ETH treasury and you are part of the interest generated from staking. While this has a very relevant impact, what is really being awaited is for the ETFs of the largest investment funds in the world, like Blackrock, to offer this service to their clients. Among corporate treasuries and other strategic entities, a total of 1,700,000 ETH has already been purchased, amounting to $6 billion USD.
This staking service would currently only be for Ethereum, but there are other cryptocurrencies, of less age and higher risk, that also have it, so it is very likely that in the near future there will be other crypto ETFs trading on Wall Street with staking service.
Moreover, it is worth noting that Blackrock itself believes that the ETH ETFs have been successful but are still incomplete due to the impossibility of doing staking. Robbie Mitchnick, the Director of Digital Assets at BlackRock, said: “The inability to earn income through staking via this product could be a significant factor hindering its growth". He also clarified: "An Ethereum ETF without staking functionality is incomplete", and explained that "staking income is an important part of generating additional revenue". Additionally, the company met with the new SEC, now composed of pro-crypto officials, to discuss everything related to staking and argued that including staking yield in their ETH ETF would significantly enhance the product.
On the other hand, in March of this year, the ETH ETF became the third fastest in Wall Street history to reach $10 billion in assets.
In this regard, at the moment only Bitcoin has had overwhelming demand through Wall Street, while Ethereum is just beginning. It is important to highlight that this new type of demand that has entered the crypto market is very relevant because a new influx of liquidity into these assets allows it to become more solid and have institutional validity; for example, Bitcoin was the cryptocurrency that withstood the historic international financial crisis caused by Trump's tariffs, and Ethereum is among the cryptocurrencies that recovered the fastest after the major downturn.
• C) Ethereum and its ecosystem.
First of all, it is important to note that decentralized blockchain assets like ETH are more than just a chart; there are dozens of indicators to evaluate and analyze them, from on-chain metrics, derivatives, liquidity flows, etc. Therefore, before investing in any of these assets, it is important to first learn about blockchain technology, correctly select and interpret the indicators, and stay updated on macroeconomic and regulatory news, etc.
Furthermore, it is not the same to analyze the token of a centralized company that possesses private information as it is to analyze a decentralized cryptocurrency with 100% public data. Blockchains bring this virtue with them: pure transparency, which allows for auditing at any time; this is called on-chain data.
Now I will focus specifically on 3 indicators, but before delving into each one, I’ll provide an overview of how much money each point represents. At the time of writing this note, the price of ETH is 3,500 USD:
- 1. Total value staked: 126 billion USD (36 million ETH).
- 2. Total supply: 420 billion USD (120 million ETH).
- 3. TVL DeFi: 80 billion USD.
1) Total value staked: Amount of ETH deposited in staking generating interest.
In this chart, the blue line represents the amount of ETH deposited in staking, and the white line is the price of ETH.
We can observe in the chart how over the last 4 years, the amount of ETH deposited in staking generating interest has continued to increase regardless of the price or what happens in the world. This is very positive because it reflects a solid and constantly evolving ecosystem.
As of July 18, 2025, there are 36 million ETH (30% of the total supply) deposited in staking (Wall Street has not yet been part of this; staking for ETFs would be authorized by the end of October), which represents 126 billion USD.
2) Total supply: Amount of ETH in circulation.
In this chart, the blue line represents the amount of ETH in circulation, and the white line is the price of ETH.
As you can see, until 2022, the blue line kept increasing; this was because the issuance of ETH was initially unregulated and its inflation was quite high. However, after that year, the consensus protocol was updated, resulting in an almost flat inflation rate. The chart shows how the issuance from 2022 flattened out (blue line) and stopped rising vertically.
The annual inflation of Ethereum is not fixed; it is variable. If there is a high usage of the network, it could even be negative and deflationary due to the burning of ETH. This gives it an approximate annual margin of 0.5-0.7% inflation, which, when balanced with the demand that the asset has from Wall Street, etc., is negligible. This system already accounts for the amount of ETH that is issued through staking.
As of July 18, 2025, there are 120 million ETH in existence (30% of 36 million is staked). This means that the total market capitalization of ETH is 420 billion USD.
3) TVL DeFi: Amount of money locked in the Ethereum blockchain.
Regarding this point, it is worth clarifying that the financial market of blockchain technology is much more than Bitcoin. Everything started with it, but it is a First Generation blockchain; currently, this technology has evolved, and there are new cryptocurrencies from new Second Generation blockchains, in which applications can exist and be programmed for use.
The first Second Generation blockchain is Ethereum. There is a huge ecosystem functioning on its network, and millions of transfers happen daily.
The most important invention that came with it was the creation of: DeFi (decentralized finance). This is a system of applications that allows anyone to lend, borrow, exchange, or earn interest peer-to-peer, without banks or intermediaries. Everything is executed automatically on the Ethereum blockchain, and anyone with internet access can participate.
Currently, as seen in the indicator, the amount of money locked in Ethereum’s decentralized finances is 80 billion USD. This is separate from the 126 billion USD (36 million ETH) that is staked. In total, there are more than 200 billion USD being part of the ecosystem created by Ethereum.
• D) Conclusion.
Everything seen in this note demonstrates how the cryptocurrency ecosystem is experiencing tremendous growth in the U.S., transitioning from being merely internet user assets to institutional assets listed on Wall Street. If the deadlines for October are met, we should see everything operational.
Moreover, this year, following the significant tariff crisis, the importance of owning an asset that has institutional demand became evident; the risk-reward balance is more equitable. The rules have changed since this market stepped into the U.S. stock exchange, and this was strongly highlighted by the temporary financial crash triggered by tariffs. Buying cryptocurrencies that only depend on demand coming from exchanges (cryptocurrency banks like Binance) can be very risky. Personally, I will only focus on those cryptocurrencies that already have demand via Wall Street (BTC and ETH) and I will add others that are about to be listed there in the future (for example: XRP and SOL). Beyond my personal opinion, I reiterate what was said earlier, before investing in this market, consider that: Decentralized blockchain assets like Ethereum or Bitcoin are more than just a chart; there are dozens of indicators to evaluate and analyze them, from on-chain metrics, derivatives, liquidity flows, etc. Therefore, before investing in any of these assets, it is essential to first learn about blockchain technology, appropriately select and interpret the indicators, and stay updated on macroeconomic and regulatory news, etc.
Finally, I emphasize that each reader must decide whether it is worth investing in Bitcoin or any other asset in the short, medium, or long term, should they consider them undervalued. What has been presented is not an investment recommendation; everyone must conduct their own investigations and arrive at their own conclusions. Always invest prudently, with buying and selling strategies in place. Investments here are very volatile and high-risk, especially for new users who are prone to falling for scams or thefts and/or buying at new all-time price highs, only to sell during a significant correction, causing them enormous losses due to unawareness of market cycles.
The worst mistake one can make in this market is to be impatient and be driven by greed or panic.
Comments