Comment: Why Goldman Sachs' assessment of Ethereum is incorrect.

From being questioned by large institutions like Goldman Sachs to sweeping Wall Street, ETFs and corporate applications have been a game-changer. This article was originally written from Brendan on Blockchain's article "Why Goldman Sachs Was Wrong About Ethereum", compiled and rewritten by Vernacular Blockchain. (Synopsis: Ethereum Foundation announces five major fiscal reforms: reduce ETH spending to 5% by 2030, strengthen staking and DeFi deployment, and expand Cypherpunk) (Background added: "Superpower" sovereign funds are ready to invest in Ethereum Infra!) ConsenSys CEO Joe Lubin broke the news that a few years ago, Ethereum was still Bitcoin's "little brother", known for decentralized financial (DeFi), pixelized NFTs, and highly creative smart contract experiments, far from being an option for "serious" investors. However, by 2025, Ethereum has become the focus of Wall Street. Goldman Sachs perfectly embodied the mind-set of traditional institutions in 2021, when they dismissed Ethereum as "too volatile and speculative" and called it "finding solutions to problems." Their research team believes that smart contract technology is overhyped, real-world applications are limited, and institutional customers have "no legitimate use case" for programmable currencies. They are not alone, JPMorgan Chase calls them "pet stones", and traditional asset managers avoid them. However, this perception is as outdated as when the Internet was originally called a "flash in the pan." Today, Goldman Sachs is quietly building an Ethereum-based trading infrastructure, JPMorgan Chase processes billions of dollars in transactions through its Ethereum-powered Onyx platform, and asset managers that were once shunned are now launching Ethereum-related products at the fastest speed. The real turning point came in 2024, when the SEC (SEC) finally approved the Ethereum spot ETF. This may not sound like an exciting dinner table topic, but it means a lot. Unlike Bitcoin, which is simply classified as "digital gold," Ethereum is a conundrum for regulators: How to regulate a programmable blockchain that supports everything from decentralized trading platforms to digital art marketplaces? They finally solved the problem and let it go, which is enough to illustrate the direction of the industry. The floodgates open for ETFs For years, there have been doubts about Ethereum's regulatory clarity, especially the SEC's ambiguity about whether Ethereum is a security. But the ETF's approval marks an important signal that Ethereum has matured as an investable asset for pensions, asset managers and even conservative family offices. BlackRock (BlackRock) pioneered the launch of iShares Ethereum Trust, and frankly, watching the release was like witnessing the "fear of missing out" by institutional investors (FOMO) Played out in real time. Fidelity (Fidelity) followed, Grayscale (Grayscale) converted its existing products into ETFs, and suddenly, every major asset manager launched an Ethereum product. But what's even more striking is that these products are not limited to regular ETFs that track the price of ETH, and some incorporate staking rewards, meaning that institutional investors can earn on their positions just like DeFi participants. Businesses Embrace Across the Board What's really fascinating is how businesses integrate Ethereum into their actual business operations. This is not a speculative reserve of assets like Bitcoin, but rather businesses building digital infrastructure on Ethereum because it solves real problems. Ethereum's true value to institutions lies in its role as an infrastructure for a programmable blockchain, capable of handling tokenized currencies, digital contracts, and complex financial workflows. Institutions are quickly jumping on the bandwagon: Franklin Templeton (Franklin Templeton), a company that manages $1.5 trillion in assets, tokenized one of its mutual funds on Ethereum, and investors now hold digital shares on the blockchain, enjoying the benefits of transparency and round-the-clock settlement. JPMorgan, through its blockchain arm, Onyx, uses Ethereum-compatible networks ( such as Polygon and their enterprise version of Ethereum Quorum) to test tokenized deposits and asset swaps. Amazon AWS and Google Cloud now offer Ethereum node services, making it easy for businesses to access the network without having to build their own infrastructure. Microsoft partnered with ConsenSys to explore enterprise use cases ranging from supply chain tracking to compliance smart contracts. These are no longer just the domain of crypto-native players. Traditional financial giants are waking up to the fast, secure, and automated intermediary-free financial services that Ethereum provides. The conversation among Fortune 500 CFOs has completely changed. Instead of questioning whether blockchain makes sense, they are asking how smart contract automation can be applied to supplier payments, supply chain finance, and internal processes as quickly as possible. The efficiency gains are obvious. The gaming and entertainment industry is particularly aggressive. Mainstream game studios are tokenizing in-game assets, music platforms are automating royalty distribution, and streaming services are experimenting with decentralized content monetization. Ethereum's transparency and programmability solved these industries' decades-old problems almost overnight. Why is Ethereum so attractive to institutions? Ethereum allows assets ( be it dollars, stocks, real estate, or carbon credits ) to be digitized, tokenized, and programmed. Combine that with stablecoins that primarily run on Ethereum ( such as USDC or USDT), and you suddenly have the building blocks to build a whole new financial operating system. Need cross-border instant settlement? Need programmable payments based on contract milestones? Need transparency but no loss of control? Ethereum can do it all, and even more. Coupled with Layer 2 (Layer 2) networks such as Arbitrum and Optimism, these solutions extend Ethereum's capacity, reducing fees and dramatically increasing speed. Many institutions choose to build on a layer-2 network to increase efficiency while still taking advantage of Ethereum's liquidity and security. All of this institutional adoption is inseparable from the infrastructure layer that most people overlook. Companies like BTCS Inc are increasingly supporting the necessary infrastructure for traditional financial institutions to participate in products such as Ethereum and ETH ETFs. BTCS focuses on operating secure, enterprise-grade Ethereum validator nodes, maintaining network integrity and enabling institutions to participate in staking without having to deal with technical complexities. While they are not custodians or ETF issuers, their validator operations support Ethereum's functionality and trustworthiness, enhancing the resilience and transparency of the network required by institutional investors. Looking ahead, what are the future trends? I think the direction is very clear. Ethereum is becoming the infrastructure layer for programmable finance. We're no longer just talking about cryptocurrency transactions, but about automated borrowing, programmable insurance, tokenized real estate, and supply chain finance that operates around the clock. The integration with the central bank digital currency (CBDC) is another huge opportunity. As countries develop digital currency strategies, many are considering Ethereum-compatible solutions to enable seamless interaction between government-issued digital currencies and the broader DeFi ecosystem. What's more, this institutional embrace is driving long-awaited regulation across the industry...