Ethereum (CRYPTO: ETH) could be the most significant macro investment opportunity over the next decade, according to Fundstrat co-founder Tom Lee, who points to the convergence of artificial intelligence, tokenization, and Wall Street's migration to blockchain infrastructure.
What Happened: Lee said on Wednesday that Ethereum's long-term growth case rests on two structural drivers: the creation of a blockchain-based token economy fueled by AI, and the financial sector's shift toward on-chain settlement and asset issuance.
This shift is being accelerated by U.S. policy developments, including the GENIUS Act, which lays a regulatory framework for stablecoins, and the SEC's "Project Crypto" initiative aimed at moving Wall Street processes to blockchain.
Fundstrat has formally added Ethereum to its "Mag 7 & Bitcoin" model portfolio.
Year-to-date, ETH has gained 28%, outperforming Bitcoin's (CRYPTO: BTC) 18% rise, and is currently within 6% of its all-time high.
Also Read: Bitcoin Touches $122,00 As Total Crypto Market Cap Nears $4.2 Trillion
Why It Matters: Sean Farrell, the firm's head of digital asset research, has projected a potential price range of $12,000 to $15,000 by year-end, with $10,000 seen as a conservative target.
The asset remains under-owned in institutional portfolios.
A Bank of America Fund Manager Survey showed only 9% of managers hold crypto compared to 48% with gold exposure, suggesting significant room for adoption.
For investors seeking exposure, Fundstrat points to both spot ETH ETFs and Ethereum treasury stocks, likened to Strategy's (NASDAQ:MSTR) leveraged position in Bitcoin.
The largest such holders include Bitmine (AMEX:BMNR), with more than 1.15 million ETH, Sharplink Gaming (NASDAQ:SBET), and Ethermachine.
Lee emphasized that the current crypto and equity market recovery remains "the most hated rally," but sees Bitcoin's recent record high as a leading indicator for U.S. equities.
Fundstrat forecasts the S&P 500 could reach $6,600 by year-end, driven by easing trade tensions, increased liquidity, and supportive monetary policy in 2026.
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