Recently, the US government and financial regulators launched a new encryption strategy aimed at expanding the TradFi market into the Blockchain space. The goal of this initiative is to solidify the United States' leadership position in the global financial industry. With the implementation of this strategy, institutional investors on Wall Street are beginning to delve into Blockchain technology and ultimately focus their attention on Ethereum.

The main reasons for choosing Ethereum are twofold: first, it has a vast ecosystem and comprehensive functionality; second, compared to other blockchain platforms, Ethereum is more stable and reliable. As a result, the current market trend is that major institutions are increasingly starting to build private chains based on Ethereum, advancing the asset tokenization process, and increasing their holdings of ETH.

Data shows that currently about 12% of Bitcoin is held by listed companies and institutional investors, while the proportion for Ethereum is less than 6%, which has not yet reached Wall Street's expected level. This suggests that institutional investors are likely to continue increasing their holdings of ETH in the future.

Market observers expect a period of sideways consolidation may occur next, where some retail investors and those lacking patience may be forced to sell, while publicly listed companies and institutional investors take the opportunity to exchange chips. In the long term, the holding structure of ETH may gradually converge towards that of Bitcoin, meaning that institutional investors and publicly listed companies like MicroStrategy will continue to buy, while the share of ETH held by retail investors will gradually decrease.

For individual investors still holding ETH, experts recommend maintaining patience and sticking to a long-term holding strategy. It is worth noting that Ethereum ETFs have seen net inflows for 12 consecutive weeks, which may indicate that institutional investors are optimistic about Ethereum's long-term prospects.

As blockchain technology continues to be applied in the financial sector, Ethereum, as the leader of smart contract platforms, may see its importance further increase. However, investors should also closely monitor market trends and changes in the regulatory environment to make rational investment decisions.