Why BlackRock is bullish on Ethereum in 2026 despite price stall

Group 1: Ethereum's Market Position - Ethereum is leading the tokenization of real-world assets, holding 66% of all tokenized assets, significantly ahead of Binance's BNB Chain at 10% [1] - Other competitors include Solana at 5%, Arbitrum at 4%, Stellar at 4%, and Avalanche at 3%, all of which have a combined market share well below Ethereum's [1] Group 2: Price Performance and Institutional Interest - Despite Ethereum's price being around $3,000, nearly 40% below its all-time high, Wall Street is making significant investments in Ethereum [3] - JPMorgan selected Ethereum for its first tokenized money market fund, valued at $9 trillion, and Morgan Stanley filed for an Ethereum exchange-traded fund [4] - BlackRock's iShares Ethereum Trust ETF has $11 billion in assets under management, with similar ETFs from Grayscale and Fidelity also reporting billions in AUM [4] Group 3: Corporate Investment Trends - Digital asset treasury firms are actively purchasing and staking Ethereum, with Bitmine acquiring an additional $100 million, adding to its $13 billion holdings [5] - Corporate players are typically long-term holders, and their acquisition of Ethereum may reduce liquid supply, potentially supporting price increases [5] Group 4: Broader Market Outlook - BlackRock's 2026 outlook also anticipates growth in the artificial intelligence and defense sectors, suggesting that the ongoing AI revolution has significant implications [6] - The report indicates that while some investors may take profits in AI companies, the overall data does not suggest a bubble [6]