Institutional interest and the return of Arthur Hayes: Ethereum prepares for a new bull cycle
BitMEX co-founder Arthur Hayes has re-entered the market, acquiring 1,332.5 ETH worth $2.53 million. This move is not just a trade, but a signal of shifting sentiment among elite players. While retail traders remain hesitant, institutional investors continue to build positions, and Ethereum appears to be the main beneficiary of this trend.
It is worth recalling that in June, Hayes recorded a loss of about $606,000 by selling 6,000 ETH. However, in early July, he executed a 180-degree tactical shift: acquiring nearly 1,939 ETH through two large over-the-counter trades. The current purchase is a logical continuation of this strategy, which is unfolding against a backdrop of growing optimism regarding Ethereum's role in future market growth.
Critics may point out that Hayes previously boasted about HYPE, ZEC, and WLD tokens, only to quietly sell them off. But the current situation is fundamentally different. Ethereum is trading around $1,906, showing a modest daily gain of 1.74% with a market capitalization exceeding $230 billion. However, the price is not the main focus now—the demand structure is.
Wall Street is changing the game
The main driver of the new bull cycle is not retail traders, but institutional giants. According to analysts, funds controlled over 9% of the total Ethereum volume last year. This share has likely grown significantly now. Bitmine Immersion Technologies Chairman Tom Lee emphasizes that Wall Street is responsible for the current rally. He cites BlackRock's BUIDL fund and the use of ETH to pay fees on Robinhood Chain as examples.
Staking data confirms this scenario. By the end of June, the share of Ethereum involved in staking exceeded 33% for the first time. The key catalyst is the launch of the iShares Staked Ethereum ETF by BlackRock, which allocates a significant portion of funds to staking contracts. This is not just passive income—it is the creation of new financial infrastructure.
Jeff Kendrick of Standard Chartered called Ethereum-based treasuries one of the strongest institutional tools in the crypto industry. The reason is staking yields and more attractive valuations compared to Bitcoin and Solana treasuries.
Hayes's new purchase indicates confidence in this trend. However, it cannot be ruled out that this is a short-term speculation. The true intentions of the market will become clear in the coming days.
My analysis: We are witnessing a fundamental shift. Ethereum is ceasing to be just a "speculative asset" and is transforming into an institutional instrument with real cash flow. If BlackRock and other giants continue to increase staking, the supply of ETH on the market will shrink, and buying pressure will rise. This is a classic recipe for a bull market, but with one caveat: it will be more sustainable than previous cycles, as it is based on institutional, not retail, demand.