Ethereum’s Wall Street Revival: Vitalik Buterin’s Big Bet

Ethereum was once seen as the most likely challenger to Bitcoin’s dominance in the cryptocurrency space and the blockchain network best suited to unlocking blockchain’s broader utility. However, while Bitcoin and other cryptocurrencies have surged in recent months—spurred in part by President Donald Trump’s endorsement—Ethereum has struggled to keep pace. Despite hosting Ether, the second most valuable digital token, its gains have been modest. Over the past year, Bitcoin’s value has climbed about 160%, while Ether’s increase has been just 40%.

In a bid to revitalize the network and its native token, Ethereum founder Vitalik Buterin and the Ethereum Foundation are backing a new startup aiming to position Ether as the go-to cryptocurrency for Wall Street. Vivek Raman, a former bond trader at Nomura Holdings Inc. and UBS Group AG, is leading the venture, Etherealize, with investments from Buterin and the foundation. While the funding amount remains undisclosed, Raman and a team of eight full-time employees launched operations this month in New York. The company’s dual focus is marketing Ethereum to financial institutions and creating tools to make the network more accessible for banks.

“If there’s any time it’s going to work, it’s right now when all the headwinds that existed in the past are now suddenly tailwinds, from regulatory to technology to Ethereum being ready to have institutional presence,” Raman explained.

Launched in 2015 by Buterin and his team, Ethereum quickly gained a reputation as a sophisticated alternative to Bitcoin, introducing a blockchain capable of executing complex financial transactions via smart contracts. During the cryptocurrency booms of 2017 and 2021, Ethereum played a central role, with its price outpacing Bitcoin.

Recently, however, Ethereum has fallen behind emerging trends. Much of the market has embraced Bitcoin as a scarce digital asset, likened to an alternative to gold—a narrative that gained momentum when Trump proposed a national strategic Bitcoin reserve last summer.

The introduction of Bitcoin exchange-traded funds (ETFs) in early 2024 made it easier for investors to treat Bitcoin as an investment. Although regulators approved Ether ETFs in July, they hold only about a tenth of the assets in Bitcoin ETFs in the U.S.

Retail investors have also shifted focus to memecoins, which, despite limited practical use, have attracted significant funds. While Ethereum hosted many early meme-based projects, creators now prefer Solana, a faster-evolving competitor. For instance, the $TRUMP and $MELANIA coins launched on Solana last week and have dominated headlines. Over the past year, Solana’s growth has outpaced both Ethereum and Bitcoin.

The Ethereum Foundation and Buterin have faced criticism for not leveraging the network’s first-mover advantage. In response to the criticism, Buterin addressed users on X last week, pledging “large changes” to the foundation’s structure and goals.

Raman believes Ethereum needs more outspoken advocates, particularly on Wall Street, where tokenization—a process of converting traditional financial products into blockchain-based tokens—could appeal to institutional investors.

“Financial institutions want safety, they want security, they want reliability, they want a track record,” said Raman. “And the only blockchain that stood the test of time and has 10 years of operating history and some regulatory clarity is Ethereum.”