The crypto market welcomes a significant turning point: policy clarification and institutional layout of Ethereum

1. Overview

Recently, the crypto market has welcomed two major catalysts: the legislative offensive of the "Cryptocurrency Week" in the United States and the intensive outbreak of Ethereum institutional layouts, together constituting the "policy inflection point" and "capital inflection point" for the industry in the second half of 2025. The deep logic of this round of the crypto cycle is shifting from Bitcoin to Ethereum, stablecoins, and on-chain financial infrastructure. The clarification of U.S. policies and the institutional expansion of Ethereum mark the entry of the crypto industry into a structurally positive phase, and the market allocation focus should gradually transition from "price games" to "capturing institutional dividends of rules + infrastructure."

2. U.S. "Crypto Week": Three Major Bills Signal Compliance Assets Will Face Value Reassessment

In July 2025, the U.S. Congress officially launched "Crypto Currency Week", systematically advancing comprehensive governance of crypto assets for the first time within the legislative agenda. This is not only a response to market risks but also a signal of the U.S. attempting to take a dominant position in the next round of competition for financial infrastructure.

The milestone "GENIUS Act" establishes a complete regulatory framework for stablecoins, covering key elements such as custody requirements, audit disclosures, asset reserves, and settlement processes. This marks the United States as the first major economy in the world to establish a unified financial regulatory framework for stablecoins.

The "CLARITY Act" focuses on the classification of the properties of crypto assets as securities and commodities, clarifying the regulatory boundaries between the SEC and CFTC. If this act is passed, it will end the long-standing uncertainty of the "regulatory gray area" for crypto assets.

The "Anti-CBDC Surveillance State Act" prohibits the Federal Reserve from issuing central bank digital currency, reflecting Congress's emphasis on financial privacy and market freedom. This sends a signal that the U.S. supports a market-driven, technology-neutral, and open-connected crypto asset ecosystem.

These bills collectively point to "regulatory promotion of innovation" and emphasize "clear boundaries and reduced uncertainty". It is expected to lead to direct consequences such as the removal of barriers for institutional investment, the confirmation of the role of stablecoins, and the policy endorsement of compliant exchanges and custodial banks.

From a deeper level, this is a strategic response by the United States to the new round of reshaping the financial order, attempting to inject institutional legitimacy into stablecoins through regulation. This game of financial geopolitical power layout will affect the formulation of standards and the control of discourse in the future global financial network.

III. ETH Institutional Arms Race: ETF Entry, Staking Mechanism Transformation, and Asset Structure Upgrade Progressing on Three Fronts

Ethereum is currently undergoing a profound restructuring of its market structure. From Wall Street financial giants increasing their positions through ETFs to publicly listed companies incorporating ETH into their balance sheets, Ethereum is accelerating its evolution into a mainstream financial asset with institutional-level allocation logic.

Since the launch of the ETF, Ethereum spot ETFs have attracted a net inflow of $5.76 billion, accounting for nearly 4% of its market value. In the past two months, the inflow of funds has accelerated, with multiple ETH ETF products recording a monthly net inflow of over $1 billion.

At the same time, several listed companies such as SharpLink Gaming and Siebert Financial have announced the inclusion of ETH in their balance sheets, marking a new narrative turning point for ETH from a "speculative asset" to a "strategic reserve asset." SharpLink currently holds over 280,000 ETH, surpassing the Ethereum Foundation and becoming the largest single institutional holder of ETH globally.

From the perspective of institutional participation structure, two major camps have formed: the "Ethereum native camp" and the "Wall Street approach". This institutional accumulation model makes the value anchor and price support system of ETH migrate towards a mainstream capital framework that is institutionalized, long-term, and structured.

This trend not only affects prices but may also reshape the governance, discourse, and ecological dominance of the Ethereum network. Vitalik Buterin and the Ethereum Foundation have recently emphasized technological resilience, security mechanisms, and decentralization principles, aiming to embrace institutional capital while avoiding governance control by a single force.

In summary, ETH is undergoing a comprehensive change in capital structure: moving from a retail-led open market to an institutional market structure driven by ETFs, listed companies, and institutional nodes. This will not only determine the future construction path of the price center of ETH but may also reshape the governance structure and development pace of the Ethereum ecosystem.

4. Market Strategy: BTC builds a high-level platform, ETH and mid-to-high quality application chains welcome a rebound logic

The current crypto market shows a "large market cap platform fluctuation + mid market cap rotation and attack" structure, with ETH and a number of L1/L2 protocols that have both narrative and technical support becoming the most valuable direction for speculation.

1. BTC is in the stage of building a high-level platform: there is support downwards, but upward momentum is lacking. On-chain data and the options market indicate a decrease in short-term breakout expectations, but institutional allocation enthusiasm has not significantly weakened.

2. The logic of ETH's supplementary rise is forming: from "lost leader" to the revaluation of "value depression". Institutional recognition is increasing, and a trend of reserves by listed companies is forming. The technical aspect has broken the downward trend line and is beginning to establish an upward channel.

3. The rise of mid-to-high quality application chains: Chains like Solana, TON, and Tanssi are迎来结构性机会. These chains have rapidly concentrated funds due to their multiple advantages of "high performance + strong ecosystem + clear positioning."

4. Market Strategy Outlook:

   • BTC allocation reserved, not the main focus
   • ETH as the core asset for rotation configuration
   • Focus on mid-to-high quality public chains and modular protocols
   • Focus on early layout targets in DePIN, RWA, AI chains, and ZK directions.

V. Conclusion: Clear Regulations + ETH Main Rise, the Market Enters an Institutional Cycle

The advancement of three key bills during the "Crypto Week" in the United States and the accelerated arms race for strategic reserves of core assets like Ethereum marks the market's gradual entry into a new cycle dominated by regulation. This clarification of the regulatory environment lays the foundation for the institutionalization and formalization of the crypto market.

The notable feature of institutional cycles is that market fluctuations are more guided by fundamentals and policy expectations, and asset price fluctuations are no longer dominated by scattered emotions and regulatory news. The deep involvement of institutional capital will promote improvements in market liquidity structure, leading investment strategies to shift from short-term speculation to medium- to long-term value investing.

The opening of institutional cycles also signifies the diversification of market structures and the multidimensional upgrade of the ecosystem. The technological innovations and governance reforms within the Ethereum ecosystem will continually drive the diversification of on-chain applications, while clearer regulations will accelerate the compliant development of more high-quality projects, fostering a deep integration of on-chain finance and traditional finance.

Investors should seize the institutional dividends and growth opportunities of core assets, actively layout Ethereum and quality application chains, and embrace a healthier and more sustainable crypto new era.