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Institutional interest in ETH surges as nearly 8% of its supply is now locked in ETFs and corporate portfolios. This trend, initially observed with Bitcoin, now extends to Ethereum with companies strategically accumulating ETH to potentially increase their stock value.

Will this movement redefine Ethereum’s market position, and could Solana and other altcoins become “treasury coins” in the future, further diversifying the crypto landscape?

In today’s financial recap:

Ethereum’s institutional adoption accelerates with 8% in ETFs and corporate treasuries.
Fed rate cut bets increase amid mixed inflation data and political pressure.
Perplexity AI bids $34.5B for Google Chrome, challenging browser landscape.
Auto industry rebounds with strong demand after price correction.

Ethereum Surge: 8% Locked in ETFs & Corporate Treasuries

The TradeWatch: Ethereum’s institutional adoption is accelerating, with nearly 8% of its supply now held in ETFs and company reserves, signaling a potential shift in crypto asset management.

Unpacked:

Corporate ETH accumulation is surging, with companies like Bitmine Immersion planning to issue $20 billion worth of stock to increase its ETH holdings.
This trend mirrors Bitcoin’s earlier treasury strategy, as companies like SharpLink Gaming and The Ether Machine adapt this playbook to boost their stock value.
Ethereum’s robust ecosystem that goes beyond just store of value, enhances its appeal to institutions as they are seeking exposure in areas that can experience growth and technological advancement.

Bottom line: This rapid ETH accumulation by ETFs and corporations could reshape market dynamics and offer new valuation perspectives. Keep an eye on whether Solana and other altcoins could be branded as ‘treasury coins’ next, potentially diversifying the crypto treasury landscape even further.

Fed Policy Focus: Inflation Data Spurs Rate Cut Bets

The TradeWatch: Mixed US inflation data, with core CPI rising to 3.1% YoY, and political drama surrounding Federal Reserve independence are driving markets to price in a near-certain September rate cut.

Unpacked:

Despite core inflation remaining sticky partly due to tariffs, investors are embracing defensive positioning and a tech stock rally fueled by AI optimism.
Shortly following the CPI report, investors placed a 90% probability that the Fed cuts rates by 0.25% at its September policy meeting.
The US Dollar Index fell as traders discounted threats to the independence of the Federal Reserve.

Bottom line:

The latest inflation data suggests that the Federal Reserve may proceed with rate cuts as early as September, despite some concerns over rising prices. The market’s reaction highlights the sensitivity to monetary policy signals amid ongoing economic uncertainty.

AI Startup Perplexity Bids $34.5B for Google Chrome

The TradeWatch: Perplexity AI, valued at $18 billion, has made a bold move by offering $34.5 billion to acquire Google’s Chrome browser, a bid exceeding its own valuation and potentially reshaping the browser landscape.

Unpacked:

The move comes amidst ongoing antitrust lawsuits and regulatory scrutiny of Google’s monopoly position, with the Justice Department seeking a Chrome divestiture as part of the case’s remedies.
Judge Amit Mehta is expected to issue a ruling this month on remedies in the Google search antitrust case, which could potentially force Google to spin off its prized browser amid ongoing antitrust litigation involving Google’s search market monopoly.
In a letter to CEO Sundar Pichai, Perplexity reportedly said its acquisition plan would preserve and support Chrome’s open-source technology, Chromium, along with other browsers, and keep Google as the default search engine—while allowing users to switch via settings.

Bottom line:

This unsolicited offer highlights the growing importance of web browsers in the age of AI and could signal a major shift in the balance of power within the tech industry. It remains to be seen whether Google will entertain the offer or fight to maintain control of Chrome, but expect regulatory hurdles to play a key role in the outcome.

Auto Supplier Boom: Rebounding on Strong Demand

The TradeWatch: Piper Sandler is optimistic about the auto industry’s rebound, citing strong demand after a recent price correction, which could lead to significant upside potential for investors. This stock sector may offer a possible rally for investors.

Unpacked:

Piper Sandler analysts are flagging stocks hovering near their lows, indicating they could be primed for a rebound, with the key being recognizing when a stock’s price is depressed and presents an opportunity.
HubSpot’s shares are down 35% year-to-date, but Piper Sandler suggests that early signs indicate that the company is at the forefront of a product-driven growth and margin rebound and you can find more information on the TipRanks database.
GoDaddy’s stock is down 32% since the start of the year, but Piper Sandler believes these shares have entered oversold territory and the business is well on its way to $13 free cash flow per share in 2026.

Bottom line:

The auto industry’s potential comeback signals a possible rally for investors for this beaten-down sector. Analysts’ positive outlooks show the potential for substantial gains, especially for HubSpot (HUBS) and GoDaddy (GDDY).

The Shortlist

CATL suspends operations – The company is pausing operations at its major lithium mine due to an expired license, potentially impacting global lithium supply.
Norway will reduce holdings – The wealth fund is set to reduce Israeli holdings over humanitarian concerns and regional tensions, signaling broader investment strategy shifts.
Paxos is seeking charter – The company is seeking a national trust bank charter in the U.S., signalling the convergence of crypto and traditional finance.