Billionaire Peter Thiel emerged this month as a key beneficiary of a 13.5% spike in ether. The investment company co-founder of PayPal generates significant paper profits through strategic bets on Ethereum-centric companies.
Thiel’s Ethereum strategy comes into play
The Wall Street Journal reports that Thiel’s venture capital approach is centered around Ethereum becoming Wall Street’s preferred blockchain platform. His founder fund owns 7.5% Ethzilla, a company that pivots to purchase ether from biotechnology. The company also manages 9.1% of Bitmine Immersion Technologies and has raised $250 million for the ether acquisition.
Ethzilla’s market value jumped from $18 million to $741 million after disclosing Thiel’s investment. Bitmine has skyrocketed over 1,000% since late June, reaching a valuation of $8.3 billion. The companies represent Thiel’s broader paper on Ethereum’s institutional adoption potential.
The basis for investment focuses on the growing role of Ethereum in traditional financial infrastructure. Major companies such as BlackRock and Franklin Templeton already run money market funds that have been tokenized with Ethereum. According to WSJ, Goldman Sachs and BNY have launched competing blockchain-based financial products.
Ethereum Network activity reached $1.2 trillion this year, from $960 billion last year. Most transactions involve major exchange operations with stub coins, such as tethers and USD coins. However, some analysts question whether current activities reflect true institutional adoption or speculative trading.
Despite the political tailwind, risk remains
The Journal points out that the Trump administration’s crypto-friendly stance provides additional momentum for etheric investments. Treasury Secretary Scott Bescent suggests that stubcoin will help manage national debt. The recent passage of the Genius Act has also raised interest in Dollar-Pegged Digital Tokens.
Critics warn that bets on Ethereum remain highly speculative and dangerous. Some network activity appears to be spam-related, such as phishing attacks and fraudulent transactions. Despite current institutional interests, it remains uncertain whether Ethereum will achieve widespread adoption of the financial industry.
Post-Tiel’s etheric bet first appeared in Beincrypto as Ethereum gained Wall Street traction.
