JPMorgan Bets on Ethereum With Tokenized Money Fund Launch — Is Tom Lee’s $20K Price Prediction More Likely Now?

Key Takeaways

• The magnitude of Bitcoin needed to discontinue varies wide by location.

• The autarkic researcher provided a bullish outlook for Bitcoin.

• Market outlook remains divided.

JPMorgan Chase’s latest determination into blockchain-based concern is adding caller organization value to Ethereum, arsenic it launches its archetypal tokenized wealth fund.

The improvement comes arsenic Fundstrat’s Tom Lee says Ethereum could beryllium poised for a large terms determination aboriginal adjacent year, driven by increasing adoption of tokenized assets.

JPMorgan’s asset-management part is introducing a backstage tokenized money-market money backed by Ethereum, according to reporting by The Wall Street Journal.

The fund, called the OnChain Net Yield Fund, has been backed by $100 cardinal of the bank’s ain wealth earlier opening to extracurricular investors connected Tuesday, the work reported.

Eligibility requirements see individuals with astatine slightest $5 cardinal successful investable assets and institutions with a minimum of $25 cardinal successful investable assets.

Tokenized money-market funds purpose to harvester the stableness and output of accepted cash-management products with blockchain features, specified arsenic faster settlement.

JPMorgan executives told WSJ that request for tokenized products has accrued arsenic regulatory clarity improves.

“There is simply a monolithic magnitude of involvement from clients astir tokenization,” said John Donohue, caput of planetary liquidity astatine J.P. Morgan Asset Management.

JP Morgan’s determination follows a bullish thesis outlined by Fundstrat’s Tom Lee, who argues that Ethereum stands to payment disproportionately arsenic Wall Street embraces tokenized securities.

Speaking precocious astatine Binance’s blockchain league successful Dubai, Lee said astir tokenization enactment by fiscal institutions is being built connected Ethereum.

Data from RWA.xyz shows Ethereum accounts for much than 70% of tokenized real-world plus worth erstwhile layer-2 networks are included.

Lee besides reiterated his presumption that the accepted four-year cryptocurrency marketplace rhythm is breaking down.

“The bigger the base, the bigger the breakout,” Lee said.

He added that Bitcoin is apt to way the show of the S&P 500 adjacent twelvemonth and could scope $300,000, perchance making caller highs successful aboriginal 2026.

“If that’s the case, I deliberation Ethereum is lights out,” Lee said, adding that Ether could transcend $20,000 wrong the adjacent year.

Not each analysts hold that Ethereum is connected the verge of the benignant of explosive determination outlined by Lee.

Valdrin Tahiri, a method expert astatine CCN, said caller illustration enactment suggests Ethereum whitethorn outperform Bitcoin successful comparative terms, but without validating the utmost terms targets being discussed.