Fundstrat
Fundstrat's Tom Lee: Why Wall Street Will Build on Ethereum?
10/13/2025, 8:43:43 PM
Economic Summary
- Bitcoin is framed as digital money/digital gold while Ethereum is framed as compute; they are complementary rather than substitutes, implying separate value pools for BTC and ETH.
- Institutional adoption is increasing: BlackRock's ETFs, Fidelity's products, and companies like Stripe building EVMs point to tokenization and financial services migrating to blockchain rails.
- If banks adopt blockchain and AI broadly (example: JPM), they could operate with far fewer staff, gain efficiency, and see valuation multiples shift toward tech-style PE multiples, similar to how Costco/Walmart re-rated.
Bullish
- Ethereum as 'compute' and Bitcoin as 'digital money' are complementary, allowing both BTC and ETH to grow in different markets.
- Institutional moves — BlackRock ETFs, Fidelity products, and Stripe building an EVM — signal accelerating Wall Street adoption.
- Blockchain plus AI could transform banks (e.g., JPM) into tech-like firms, reducing costs and potentially re-rating multiples.
Bearish
- Regulatory changes or a less favorable regulatory environment could stall institutional adoption and product launches.
- Integration challenges and legacy system complexity at banks may slow blockchain-driven efficiency gains.
Bullish tickers
ETHBTCBLKFIDELITYSTRIPEJPMCOSTWMTNVDA
BTC
Bullish
Established digital gold narrative; cited as complementary to Ethereum in institutional portfolios.
Bearish
Regulatory pressures or competition from other blockchain use-cases could limit its store-of-value adoption.
ETH
Bullish
Positioned as the compute layer for Wall Street applications, tokenization, and smart-contract-driven finance.
Bearish
Scaling, regulatory, or integration hurdles with financial institutions could slow its role as 'compute' for finance.
BLK
Bullish
BlackRock's ETFs and tokenization initiatives are cited as major institutional validation for blockchain.
Bearish
ETF and tokenization product success depends on regulatory outcomes and market uptake.
JPM
Bullish
If JPM adopts blockchain/AI broadly, it could operate with far fewer employees and earn a tech-like valuation multiple.
Bearish
Legacy banks may face disruption and operational challenges during transition to blockchain-based models.
COST
Bullish
Used as an example of a company re-rated after systematizing operations, suggesting potential for banks to re-rate similarly.
Bearish
Retail re-rating analogies may not fully translate to financial institutions under all conditions.
WMT
Bullish
Another example of operational transformation leading to higher multiples, used as an analogy for banks.
NVDA
Bullish
Referenced as a high-PE tech comparator when discussing potential multiple expansion for systematized firms.
F
Bullish
Used as a contrast to illustrate potential valuation uplift for transformed companies.
Bearish
Cited as an example of a lower-multiple legacy company versus re-rated retailers.
FIDELITY
Bullish
Mentioned as an institutional entrant developing products, supporting mainstream adoption of tokenized finance.
STRIPE
Bullish
Building its own EVM indicates corporate infrastructure adoption of blockchain technology.
People mentioned
TomKathy Wood