Institutional interest in Ethereum has surged following the successful implementation of the Pectra upgrade, which boosts the scalability and security of the blockchain network.
The activation of the Pectra upgrade in early May has transformed the Ethereum network, improving its scalability, security, and usability. Matt Hougan, chief investment officer at Bitwise, noted that the improvements in these aspects have driven its mass adoption, especially among institutional investors.
In a recent publication, titled The Case for Diversified Crypto Exposure, Hougan outlined the factors that are accelerating institutional interest in this cryptocurrency, highlighting the latest blockchain update as one of the most significant technological milestones for the platform since The Merge.
Prepare your wallet and enter crypto with confidence.Pectra, as reported by this outlet, introduces improvements that optimize both the execution and consensus layers, integrating eleven EIPs that seek to make the Ethereum network more efficient, secure, and accessible. Among the most notable innovations is account abstraction (EIP-7702), which allows users to pay transaction fees with tokens other than ETH, facilitating interaction with decentralized applications (dApps) and improving the user experience. Additionally, the staking limit for validators was increased from 32 ETH to 2.048 ETH (EIP-7251), which simplifies management for large investors and reduces network congestion, favoring the sustainability of the Proof-of-Stake system.
Pectra also doubles the data capacity per block, promoting scalability and reducing operating costs, a crucial advance for the integration of Layer 2 solutions. All of these technical improvements have improved investor perceptions of cryptocurrency, sparking a new wave of institutional interest.
The Institutional Vision: Matt Hougan and the Analogy with the Expansion of the Internet
Hougan acknowledged that there are "multiple reasons" for the optimism Ethereum is currently experiencing. He emphasized that, after a brutal few months, during which its price fell by almost 60%, ETH remains the second-largest crypto asset on the market. He also noted that it has recovered exponentially in recent days. “It’s up 53% since its April 12 low, and up an incredible 37% in the last week alone,” Hougan said in the publication.
TRADE WITH CONFIDENCE – GO TO BIT2ME LIFEAccording to market data, the price of ETH is trading at around $2.500, with a 40% increase since the end of April. For Hougan, this recovery is largely due to the arrival of Pectra and, in general, to "a general shift in risk in the market."
Source: CoinGecko
However, beyond focusing on the price of this cryptocurrency, Hougan focused on answering the question that surrounds many investors in the current market. He emphasized that many are wondering whether they should diversify their cryptocurrency holdings beyond Bitcoin, highlighting that investors should maintain a diversified portfolio of crypto assets to take advantage of the dynamism of this market.
TRADE EASILY AND SECURELY WITH ETHEREUM HEREBitcoin is king, Ethereum is a general-purpose technology
Hougan has compared the current evolution of the blockchain ecosystem to the expansion of the Internet in 2004, when Google dominated the market. In his opinion, he believes that Bitcoin is the king of cryptoassets, the largest, most liquid, and most established of all, and the only one with a real chance of being “money.”
“In my opinion, [Bitcoin] is similar to “digital gold” and is the only crypto asset with the potential to become a globally significant currency.”, Hougan said, referring to the leading cryptocurrency, but also noted that other digital assets like Ethereum are “a general-purpose technology” that can power many blockchain use cases and therefore grow exponentially.
In his analogy, he said that Google dominated the internet in 2004, but the biggest gains were achieved by diversifying into other tech companies like Amazon and Netflix. With this, he suggested that Ethereum presents itself as a programmable platform that opens up new opportunities in decentralized finance, tokenization, and emerging technologies, while Bitcoin serves as a global store of value.
Based on this, Hougan believes that Ethereum, with its revamped infrastructure thanks to Pectra, is positioned as a fundamental pillar for the development of applications that can redefine financial and commercial interaction. This perspective has begun to be reflected in the growing incorporation of Ethereum into institutional portfolios, a sign of the growing maturity of the crypto market.
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The support of figures like Hougan and the entry of major financial players reinforce the idea that Ethereum is not just a digital asset, but a technological platform with disruptive potential that is transforming the global economy.
INVITE AND WIN AT BIT2MEBlackRock and its multi-million dollar 'trust' in Ethereum
The most tangible boost for Ethereum in 2025 has been the multi-million dollar investment from players like BlackRock, the world's largest asset manager, which acquired approximately $52,8 million in Ethereum through its iShares Ethereum Trust (ETHA) ETF in May. This purchase responds to growing institutional demand and seeks to support the fund's holdings.
BlackRock's transaction not only confirms its confidence in Ethereum but also acts as a catalyst for market stability and growth. During the week of May 19-23, net inflows into Ethereum ETFs in the United States reached nearly $250 million, the highest weekly figure in months, consolidating a positive trend of net inflows.
Source: Soso Value
This institutional backing reduces the perceived risk associated with cryptocurrencies and may motivate other large investors to expand their Ethereum positions. Furthermore, BlackRock's influence in tokenization and the creation of digital financial products suggests a future where the convergence of blockchain and traditional finance will generate new investment opportunities with greater regulation and stability.
In conclusion, the Pectra upgrade has improved Ethereum's scalability, security, and accessibility, driving renewed institutional interest in the cryptocurrency.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
