Ethereum Is Still Wall Street’s Pick, Says Tom Lee

• Tom Lee says Ethereum remains favored by Wall Street.
• He raises concerns about a digital asset treasury bubble.
• Ethereum still holds strategic importance in finance.

According to Tom Lee, co-founder of Fundstrat Global Advisors, Ethereum continues to hold a strong position as the preferred blockchain among institutional investors. In a recent statement, Lee described Ethereum as “Wall Street’s blockchain,” highlighting its dominance in the areas of decentralized finance (DeFi), tokenization, and smart contracts.

Ethereum’s extensive developer ecosystem and its history of being the first smart contract platform make it attractive to traditional financial players. As institutions increasingly explore blockchain use cases, Ethereum remains their go-to infrastructure due to its security, maturity, and widespread adoption.

Lee’s remarks echo broader market sentiment that sees Ethereum as a bridge between legacy finance and emerging digital technologies.

Caution Flags Over Digital Asset Treasuries

However, Lee didn’t stop at praise. He also issued a cautionary note, pointing to what he believes may be a growing bubble within the digital asset treasury sector. As more companies and protocols begin holding crypto assets as treasury reserves, valuations are climbing rapidly.

Lee expressed concern that this trend might be moving too fast, too soon. He warned that overvalued treasury strategies — such as protocols issuing native tokens to buy other assets — could lead to unsustainable dynamics. If these projects don’t generate real revenue or utility, their treasuries could become liabilities instead of strengths.

This warning comes at a time when several protocols have been showcasing large token treasuries as a measure of strength, potentially attracting investors without enough underlying fundamentals.

Strategic Importance vs. Speculative Excess

Lee’s dual message is a timely reminder of the need to separate long-term blockchain utility from short-term speculation. Ethereum continues to play a crucial role in building the financial systems of the future, but other areas of the crypto economy — particularly treasury management — may require closer scrutiny.

As crypto markets mature, institutional and retail investors alike should focus on fundamentals rather than hype. Lee’s remarks serve as both an endorsement of Ethereum’s foundational role and a warning about emerging bubbles in adjacent sectors.