Cathie Wood's Ark Invest Mulling 'Purpose-Built' Ethereum Investment Tools, Says Analyst After Firm Buys $180 Million Stake In Tom Lee-Led ETH Treasury Company

+1.42% Pre

+0.72% Pre

+3.59% Pre

-1.40% Pre

+3.34% Pre

BitMine Immersion Technologies

BMNR

31.39

31.43

+1.42%

+0.13% Pre

GRAYSCALE ETHEREUM MINI TRUST

ETH

27.82

27.56

+0.72%

-0.93% Pre

Robinhood

HOOD

119.40

121.37

+3.59%

+1.65% Pre

JPMorgan Chase & Co.

JPM

315.55

317.50

-1.40%

+0.62% Pre

Strategy

MSTR

167.50

166.99

+3.34%

-0.30% Pre

Cathie Wood-led Ark Invest is betting on the transformative potential of smart contract Layer-1 tokens like Ethereum (CRYPTO: ETH) in decentralized finance, the company’s leading cryptocurrency analyst said on Wednesday.

What Happened: Lorenzo Valiente, Director of Research at Ark, described smart contract Layer-1 tokens as a “distinct and transformative asset class.”

He specifically discussed Ethereum, highlighting some of its properties, such as its ability to secure the on-chain economy via proof-of-stake, enable transactions and act as programmable collateral at the protocol layer.

“Given these unique properties, we're excited to explore purpose-built investment vehicles and strategies tailored to this emerging landscape,” Valiente said. Ark CEO Wood reposted his X post.

We think crypto, particularly smart contract L1 tokens, represents a distinct and transformative asset class.

Ethereum stands out as foundational: it secures the on-chain economy via proof-of-stake, enables transactions, and acts as programmable collateral at the protocol layer.… https://t.co/8S7E22yH21
— Lorenzo Valente (@LorenzoARK) July 23, 2025

See Also: Altcoin Speculation Surges: Is Crypto Headed For A Leverage-Fueled Meltdown?

Why It Matters: Valiente’s remarks come in the wake of Ark’s major equity investment in BitMine Immersion Technologies Inc. (AMEX:BMNR), a Bitcoin (CRYPTO: BTC) mining firm that recently transitioned to an Ethereum-focused treasury strategy. Ark acquired nearly 4.8 million shares, valued at $182 million.

Thomas "Tom" Lee, Chairman of BitMine's Board of Directors, deemed Ethereum “the preferred choice for Wall Street,” citing JPMorgan Chase & Co. (NYSE:JPM) and Robinhood Markets Inc. (NASDAQ:HOOD), which are building stable coin and tokenization infrastructure on the network, respectively.

Notably, the world's largest asset manager, BlackRock, also introduced its Ethereum-powered tokenized U.S. Treasury product, BUIDL, last year.

Price Action: At the time of writing, ETH was trading at $3,650.99, down 1.99% in the last 24 hours, according to data from Benzinga Pro.

BitMine shares closed 2.06% lower at $39.50 on Wednesday. Year-to-date, the stock has exploded 406%.

As of this writing, the stock demonstrated a very high Momentum score. Visit Benzinga Edge Stock Rankings to see how Strategy Inc. (NASDAQ:MSTR), the pioneer of cryptocurrency treasury, stacks up.

Photo Courtesy: VPLAB On Shutterstock.com

Read Next:

Ethereum Treasury Company Trend ‘Will Accelerate’, Says Bitwise’s Matt Hougan—Here’s What It Means For ETH’s Price

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

More This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.