Stormrake - Insights #Blackrock ETH

Ethereum: The “Digital Oil” of the Modern Age

Wed, 06 Aug 2025 16:27:40 +1000

Since the last bull run in 2021, Ethereum (ETH) has undergone a quiet transformation. It is no longer just a smart contract plaƞorm for DeFi experiments and NFT collectibles – it’s steadily becoming the core infrastructure layer for stablecoins and tokenized real-world assets (RWAs), the bridge between traditional finance (TradFi) and blockchain ecosystems.

This shift is ushering in a new era where institutions, governments, and fintech plaƞorms are turning to Ethereum for asset issuance, settlement, and liquidity. To put it simply, it is already reshaping the way global value flows across markets.

Ethereum’s Growing Role in Stablecoins

Stablecoins are digital tokens that track the value of fiat currencies like the US dollar. They are critical for crypto trading, remittances, cross-border settlements, and as a hedge against crypto market volatility. Among the vast number of blockchain plaƞorms available today, Ethereum remains the dominant home for stablecoins.

Major stablecoins like USDC, USDT, DAI, and PYUSD are primarily issued on Ethereum, taking advantage of its security, composability, and widespread developer support. In fact, more than 60% of stablecoin transaction volume flows through Ethereum’s mainnet or Layer 2s. Why? Because Ethereum offers the best blend of decentralization, scalability, and regulatory flexibility for stablecoin issuers and users alike.

Institutional adoption is reinforcing this trend. Visa has begun settling cross-border payments using USDC on Ethereum. PayPal’s PYUSD – their very own dollar-backed stablecoin is launched as an ERC-20 token on Ethereum. These moves highlight Ethereum’s role as the settlement layer for digital dollars, which could soon be the on-chain equivalents of real-world fiat currencies.

Tokenizing Real-World Assets on Ethereum

Beyond stablecoins, Ethereum is becoming the go-to network for tokenizing real-world financial assets, including but not limited to; U.S. Treasuries, private credit, gold, and real estate.

This trend, known as Real World Asset tokenization, or simply RWA allows traditional assets to be represented as tokens on a blockchain. These tokens can then be traded, borrowed against, or used in DeFi protocols. Ethereum’s security, smart contract flexibility, and mature infrastructure make it the obvious foundation.

A few high-profile examples include:

BlackRock’s BUIDL tokenized U.S. Treasury fund, which runs on Ethereum
Franklin Templeton’s tokenized money market fund, issued as an Ethereum-based token
Ondo Finance, which tokenizes U.S. Treasury yields and allows investors globally to gain exposure through Ethereum wallets

This movement turns Ethereum into a compliance-aware, globally accessible financial operating system - something that didn’t exist in TradFi or crypto just a few years ago.

What’s Changed Since the 2021 Bull Run?

Several key upgrades and ecosystem developments since 2021 have paved the way for Ethereum’s integration with traditional finance:

The Merge (2022) - Ethereum transitioned from proof-of-work to proof-of-stake, cutting energy use by over 99% and aligning with ESG mandates, making it more palatable to institutional allocators.
EIP-1559 (2021) - Introduced a burn mechanism that removes a portion of ETH used in transaction fees, especially during high network activity. This has created periods of deflationary pressure on ETH supply, in-turn making it scarcer with better supply vs demand token-omics
EIP-4844 (2024) - Enabled proto-danksharding, which significantly lowers data costs for Layer 2 rollups, making Ethereum-based applications more scalable and affordable for users and enterprises.
Explosive Growth in Layer 2s - Networks like Arbitrum, Optimism, and Base now host major stablecoin and RWA projects, thanks to lower gas fees and Ethereum-grade security. These rollups settle back to Ethereum mainnet, reinforcing ETH's position at the center.
Better Institutional Tooling - Solutions like Fireblocks, Chainlink CCIP, and KYC-enabled smart contracts have matured to meet the compliance needs of financial firms operating on-chain.

How This Affects ETH’s Price and Long-Term Value

Ethereum’s growing use as infrastructure is not just technical, rather it has clear implications for ETH, the underlying asset.

ETH as Fuel: Every stablecoin or RWA transaction on Ethereum or its Layer 2s burns a bit of ETH through gas fees, especially during periods of high activity.
ETH as Collateral: As stablecoin and RWA protocols grow, they increasingly rely on ETH for liquidity, governance, or backing.
ETH as Staked Capital: Institutions and individuals alike are staking ETH to earn yield, locking up supply and reducing sell pressure.

The combination of growing demand (for usage and staking) and declining issuance (due to burns and locked tokens) is seƫng ETH up for strong upward price pressure. Unlike speculative altcoins, ETH is building deep, real-world utility – now with institutional and retail investors noticing.

Ethereum Is Becoming the Internet Bond Layer

As stablecoins and RWAs move on-chain, Ethereum is not just keeping up - it’s becoming the standard. The network has evolved from a DeFi sandbox into the core infrastructure for institutional-grade digital finance.

This transformation means that ETH acting as both the fuel and the foundation of this new economy, it’s well positioned and quickly becoming the “digital oil” and reserve asset of a programmable financial future.

If Ethereum continues on this path, its relevance in global finance will grow dramatically, and in-turn so will the value of its native asset. Such as with ETH’s current price action, we just witnessed July give us an explosive rally over 65% from trough to peak for the month.

Source:https://www.tradingview.com/x/WAIVuQm7/

From a low of $2,400 to a local peak just over $3,900, we’ve got the definitive confirmation that we needed on the charts now; the bottom is in. Trend has reversed back up with extreme buying volume, mostly consisting of Institutional ETF inflows, of which are breaking records daily now. Smart money is loading up the truck and they aren’t slowing down. Despite the recent liquidation sell off over the last few weeks, aimed at shaking out over-leveraged retail traders (a good thing), we are definitively now in an uptrend on all major timeframes, especially with that bounce overnight regaining local trend support.

In the short-term, we’re targeting a small retrace back down to $3,546 in order to keep building up support as we see things creep up higher.

Source:https://www.tradingview.com/x/FQnfQVDu/

I suspect once we tag this short-term trend support, it will give us the solid structure we need to start pushing the ever-elusive $4,000 resistance zone that ETH has been stuck under all Bull run, however this time, with the expected late stage liquidation sell-off behind us, and Bitcoin Dominance continuing to fall (as outlined in previous articles) the timing of an Alt season combined with ETH’s resurgence isn’t a coincidence. We strongly believe it’s time to break through the $4,000 barrier sooner rather than later and into new All Time High’s.

Exciting times ahead to be sure. Keep a close eye on the charts and keep an eagled-eye out for more of our incoming articles over the coming weeks and months, because this train is about to get certified crazy sooner rather than later! (in all the right ways!)

Written by James Ryan

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.

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US Debt Calamity Rolls On

Fri, 06 Jun 2025 13:28:24 +1000

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As Lyn Alden aptly put it, “Nothing stops this train”—and in the context of US debt, it couldn’t be more accurate. The fiscal circus playing out in Washington has been on full display this past week, with political figures from all sides weighing in as the numbers become impossible to ignore.

The US national debt has surged to a staggering $36.21 trillion, setting yet another all-time high. This runaway train shows no signs of slowing. Even the Department of Government Efficiency can’t rein in spending meaningfully. Elon Musk, speaking under his DOGE persona, highlighted that interest payments alone now consume 25% of all US government revenue, describing the situation as "debt slavery" for Americans.

Vivek Ramaswamy added fuel to the fire, noting that the US now spends more on debt interest than the entire military budget, with projections suggesting the debt could balloon to $60 trillion within the next decade.

Despite this fiscal brinkmanship, Treasury Secretary Bessent assured markets that the US is "never going to default." Yet, in a rare moment of agreement, Trump and Senator Warren have floated the idea of removing the debt ceiling altogether, a move that would give the government unlimited borrowing power. If mishandled, this could dangerously inflate the debt-to-GDP ratio even further.

But a potential lifeline is emerging from an unexpected source. Senator Cynthia Lummis has proposed that a Bitcoin Strategic Reserve could eliminate half of America’s debt burden.

Bitcoin: The Hedge Against Fiat Failure

As fiat continues to fracture under the weight of systemic mismanagement, more investors are rotating into hard assets. And Bitcoin isn’t just a hedge, it was purpose-built for this exact scenario. When fiat fails, Bitcoin shines. And the system is more than just failing, it’s spiralling.

The key question: Are you staying on the train, or stepping off before it derails?

With fiat devaluation accelerating alongside debt expansion, it’s simple, get allocated into Bitcoin and safeguard your purchasing power. Contact your Stormrake Broker to position yourself ahead of the curve and learn more about the real implications of the debt crisis.

Stormrake Spotlight: Bittensor (TAO) ($382)

Source:https://www.tradingview.com/x/J4hlFbSa/

TAO is teetering within its key support zone, and any break below could hand control to the bears. Still, the 55 and 200 EMAs are acting as critical support levels, which could offer near-term relief.

But let’s be clear—TAO will mirror Bitcoin's trajectory. If Bitcoin pulls back, TAO is almost certain to follow.

BTC/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/DvVrLUJD/

Bitcoin has lost short-term momentum after yet another rejection at the 0.5 Fibonacci level and 200 EMA resistance at $106K. It now eyes $104K—a crucial support that must hold to avoid slipping back to the $101K zone.

The consolidation range between $106.6K and $104K remains in play. Until either boundary is broken, the structure is technically neutral—but momentum currently favors the bears.

BTC Total ETF Flows for 4 Jun: $ - 197.0 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

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Has the Rotation Begun?

Wed, 04 Jun 2025 13:12:04 +1000

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Ethereum has been the clear underperformer of this cycle—still down nearly 50% from its all-time high and nowhere near setting a new one. It hasn’t been able to sustain any meaningful bullish momentum throughout this entire run; every attempt has been met with renewed selling pressure, consistently dragging prices lower.

But for the first time this year, ETH is showing signs of life. After bottoming out at $1,380 in early April, Ethereum has nearly doubled in just eight weeks—significantly outperforming most other cryptocurrencies. This marks the first rally where ETH has managed to sustain and consolidate gains after a breakout, rather than reversing and resuming its downtrend.

This move has been fuelled by institutional demand. Over the past three days of ETF trading, Ethereum has consistently seen net inflows—while Bitcoin ETFs have recorded three consecutive days of outflows. Since May 16, every trading day has brought net inflows into the Ethereum ETF. In parallel, just yesterday it was reported that BlackRock had sold 1,250 BTC (worth $132.72 million) while purchasing 19,070.96 ETH (worth $48.4 million). This suggests that the rally is not just speculative—it’s backed by real institutional accumulation.

Source:https://www.tradingview.com/x/yQH4uTlV/

The chart above shows Ethereum finally breaking out against Bitcoin. ETH has been in a persistent downtrend relative to BTC since 2021 and hasn’t come close to revisiting its 2017 high of 0.15. While it’s unlikely ETH will return to those previous highs, this breakout is giving holders a much-needed sense of hope. The structure and momentum of ETHBTC have now flipped bullish, indicating that capital is beginning to rotate out of Bitcoin and into Ethereum.

Crucially, ETH is now consolidating above the breakout level—something that didn’t occur during previous rallies, which were swiftly rejected. If this consolidation holds, we could see ETHBTC push towards 0.029–0.03.

This doesn’t mean Bitcoin won’t continue its push toward new all-time highs. It simply suggests that, in the short term, Ethereum may outperform. Historically, this BTC-to-ETH rotation has signalled the start of altseason. It’s still early days—but keep an eye on the ETHBTC chart.

Stormrake Spotlight: Bittensor (TAO) ($393)

Source:https://www.tradingview.com/x/p2GFUWWJ/

TAO has retraced back to the key support zone at $390 after failing to break above the 21EMA over the weekend. It has since bounced nearly 2% from this support and the 55EMA. This level is critical for bulls to defend—failure to hold it could lead to a bearish breakdown and further downside.

BTC/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/xH02A1OB/

Bitcoin managed to fill and neutralise the first bearish supply zone at $106K yesterday. As anticipated, it reached the next zone around $106.7K, which proved too strong for bulls and triggered a reversal. This confluence of the 0.618 fib level and supply zone is pivotal—if BTC breaks above it, we could see a move towards $109K and potentially a retest of the all-time high.

Momentum still favours the bulls, but it’s being tested as BTC battles to stay above the 21 and 55EMA. A failure to hold these levels could send BTC back to $104K, flipping momentum in favour of the bears.

BTC Total ETF Flows for 3 Jun: $ + 317.1 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

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Ethereum Is Falling Behind—But Smart Money Keeps Accumulating

Thu, 06 Feb 2025 13:01:39 +1100

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Bitcoin has endured another bearish 24 hours, continuing its downward trend. With no major macroeconomic catalysts expected until the release of US CPI data on the 13th, the coming week should allow the crypto market to trade freely without external economic influences. Of course, a week is a long time in markets—especially in crypto—and with the current political landscape, one can never get too comfortable.

Ethereum’s Underperformance: A Cycle of Disappointment

This has been a cycle of underperformance for Ethereum. While its main competitor, Solana, has posted multiple all-time highs, Ethereum has failed to break new ground. In fact, since Bitcoin first hit $100K in December, Ethereum has only moved backwards. At the time, ETH was trading at $4K—I’ll let the following image tell the rest of the story:

Source:https://x.com/uputkucrypto/status/1886676383880958182

Ethereum’s underperformance has come as a shock to many. Back in 2021, when market euphoria was rampant and Bitcoin was predicted to hit $100K, many expected Ethereum to reach $10K. Four years later, Bitcoin has surpassed $100K multiple times, yet Ethereum has failed to impress. This cycle’s high of $4.1K is still 15% below its 2021 all-time high of $4.9K. Currently, ETH sits 43% lower than its peak—hardly the performance many had anticipated.

Institutions Accumulate Ethereum at Low Prices

Despite retail investor disappointment and negative sentiment, major institutions have been aggressively accumulating Ethereum at these lower prices. We’ve previously covered the mass buying by World Liberty Financial (the crypto project directly linked to Donald Trump). Additionally, Fidelity purchased another $50 million worth of Ethereum two days ago, and BlackRock—arguably the most influential player in the space—bought 100,535 ETH worth $284.92 million, as reported by @WhaleInsider on X yesterday.

When institutions accumulate at key levels, it makes sense to take notice. Following the smart money rarely ends poorly.

Stormrake Spotlight: Ethereum (ETH) ($2,766)

Source:https://www.tradingview.com/x/SQcrdUMY/

Ethereum remains extremely undervalued at current levels and is trading at the exact range where major players are accumulating. The identified major support level appears to be holding, reinforcing the case for accumulation.

BTC/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/xfFDiT6k/

Bitcoin remains within a consolidation range between $95.7K and $100K. Despite trading in this broader range, BTC’s overall trend remains bearish, struggling to flip bullish as the 55 EMA continues to reject attempts at a breakout to the upside.

BTC Total ETF Flows for 5 Feb: $ (data not available)

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/w06IuUm6/

Ethereum is currently attempting to flip bullish and push toward the key resistance level of $2,865. If ETH can break above the 55 EMA, which has consistently acted as a resistance throughout this bearish trend, a bullish breakout could follow. However, failure to do so may see ETH retrace toward the lower end of the range at $2,556.

ETH Total ETF Flows for 5 Feb: $ (data not available)

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.