Ethereum has once again shown that institutional interest in it is still strong. FalconX has transferred 78,891 ETH, valued at $358 million, to four new wallets that may be connected to BitMNR over the last 30 hours. These massive transfers highlight the reality that institutions and whales are still covertly amassing ETH, even though individual traders may be hesitant.

ETH stays consolidated

Following a rally that saw it rise from sub-$3,000 levels only months ago, ETH is currently consolidating at around $4,580 on the price chart. Ethereum has escaped a sharp correction, staying well above its 20-day EMA at $4,290, in contrast to many other altcoins. This tenacity demonstrates how consistent demand is driving its upward trajectory.

The momentum is still very bullish. With the RSI hovering just above 60, which indicates strength without displaying overbought warnings, there is potential for another upward push. Based on the current structure, ETH may retest $4,800 and possibly move toward the psychological $5,000 mark as long as it stays above the $4,200-$4,300 support zone. The volume has also remained comparatively high in comparison to the beginning of the year, indicating robust market participation.

Institutions push more

An important background here is provided by institutional flows, such as the FalconX transfers. They serve to mitigate downside risks by demonstrating that demand is still robust at higher levels, in addition to reaffirming Ethereum’s standing as a long-term strategic asset. This stands in stark contrast to Bitcoin, which has recently faltered around $110,000 and has had difficulty keeping up its momentum.

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In summary, Ethereum is thriving rather than merely existing. Ethereum’s case for reaching new heights is becoming stronger every day as institutional wallets take in hundreds of millions of ETH, and technical indicators show continued strength. The underlying trend indicates that Ethereum is not dying but rather getting ready for its next chapter above $5,000, even though volatility will always be a part of the story.

Early Bitcoin adopters aren’t likely to stop being skeptical of institutional adoption anytime soon, says Bitcoin venture fund Ego Death Capital co-founder, Preston Pysh.

“Part of that culture that brought it to where it is, is looking at where this is all going and saying no, no, no, no, this is all moving in a bad direction,” Pysh told Natalie Brunell on the Coin Stories podcast on Friday.

Pysh said that institutions engaging in “institutional-like things,” such as Bitcoin (BTC) derivatives, have some Bitcoiners concerned about the long-term impact and whether Bitcoin can still serve as the safe-haven asset it once was.

“Am I being scammed, like all the other scams that preceded this wave?” is a question Pysh says some of the Bitcoin community are asking as institutional interest grows.

Bitcoiners who pushed it past $1 trillion worry about its direction

The comments come amid ongoing debate in the Bitcoin community over whether growing institutional interest is moving Bitcoin away from its original purpose.

“For people who have made Bitcoin what it is, getting it here, over a trillion dollars, involved individuals, for the most part, self-custodying Bitcoin, holding onto the keys for dear life through 70% and 80% downturns and still not selling them,” Pysh said, adding:

“The term we like to throw around is we’re Bitcoin psychopaths.”

It comes nearly a month after a heated debate on social media when crypto analyst Scott Melker, also known as The Wolf of All Streets, said that Bitcoin “is amazing” but has been taken over to some extent by the people it was created as a hedge against.

Meanwhile, Ryan McMillin, chief investment officer at Merkle Tree Capital, recently told Cointelegraph that old Bitcoin being sold to new institutions is a sign of its “integration with the financial system.” 

Institutions will use Bitcoin “very differently” than individuals: Pysh

Pysh explained that the Bitcoin ethos is being challenged, and he expects it to continue facing scrutiny as institutional interest expands.

“I think that it’s going to move in a direction where a lot of people use Bitcoin the way they wanna use Bitcoin, especially institutions, who are going to use it very differently to how individuals use it,” Pysh said.

Related: Bitcoin price charges to $116K as Fed’s Powell hints at interest-rate cut

“That’s a difficult pill for people to swallow,” he said.

“At large, part of the Bitcoin culture is to be pretty much skeptical of everything and to question everything,” he added.

According to a March 18 report by Coinbase and EY-Parthenon, 83% of institutional investors surveyed said they plan to increase crypto allocations in 2025.

Magazine: Bitcoin’s long-term security budget problem: Impending crisis or FUD?

]]> https://earlybirdsinvest.com/bitcoiners-skepticism-over-institutions-isnt-going-away-preston-pysh/feed/ 0 54656 https://earlybirdsinvest.com/cathie-wood-just-went-bargain-hunting-2-artificial-intelligence-ai-chip-stocks-she-just-scooped-up-hint-nvidia-isnt-one-of-them/ https://earlybirdsinvest.com/cathie-wood-just-went-bargain-hunting-2-artificial-intelligence-ai-chip-stocks-she-just-scooped-up-hint-nvidia-isnt-one-of-them/#respond Sun, 06 Jul 2025 15:20:40 +0000 https://earlybirdsinvest.com/cathie-wood-just-went-bargain-hunting-2-artificial-intelligence-ai-chip-stocks-she-just-scooped-up-hint-nvidia-isnt-one-of-them/

As CEO and chief investment officer of Ark Invest, Cathie Wood might be best known for her high conviction in speculative opportunities across industries such as genomics and cryptocurrency.

When it comes artificial intelligence (AI), many of Ark’s biggest positions are in volatile stocks such as Tesla and Palantir Technologies. Over the last couple of months, however, Wood has quietly been rounding out her exchange-traded funds (ETFs) with semiconductor stocks.

Let’s explore two AI chip stocks that have recently become rising stars in the Ark portfolio. Is now the time to follow Wood’s moves? Read on to find out.

1. Advanced Micro Devices

While Advanced Micro Devices (AMD -0.45%) has been part of Ark’s portfolio for quite some time, the investment firm began aggressively adding to its position throughout late April and most of May.

According to public trading data, Ark added approximately 800,000 shares of AMD between June 17 and 30. The position is spread across the Ark Autonomous Technology & Robotics ETF, Ark Next Generation Internet ETF, Ark Fintech Innovation ETF, and Ark Innovation ETF. As of this writing, AMD has now become the 11th biggest position for Ark Invest overall.

In fairness, AMD’s rise at Ark has been influenced by some pronounced share price gains in recent weeks too. Since Ark began adding to its AMD position in late April, shares have gained roughly 61%.

In my eyes, AMD’s recent gains can be tied to the company’s accelerating data center business as well as bullish anticipation for its new AI accelerators during the second half of this year.

Data by YCharts.

Nevertheless, even with such a massive move in the share price, AMD trades for roughly 36 times forward earnings. Although this isn’t exactly cheap, shares of AMD are well within their usual valuation range.

My hunch is that AMD is still being discounted by some investors, primarily due to the enormous competitive threat the company faces from Nvidia.

Considering how much momentum is fueling AMD stock right now, I think I’d sit on the sidelines for the time being. To me, the company’s long-term prospects are somewhat ambiguous so long as Nvidia remains king of the chip industry. While there is likely still good money to be made in AMD stock, there are more reasonable price points to build a position.

Image source: Getty Images.

2. Taiwan Semiconductor Manufacturing

Ark complemented its AMD purchases with some exposure to Taiwan Semiconductor Manufacturing (TSM 0.75%) back in May. The firm doubled down on this decision by adding over 190,000 shares of TSMC throughout June.

I see TSMC as the most interesting opportunity within the broader chip landscape. Unlike Nvidia, AMD, Broadcom, or the cloud hyperscalers, TSMC doesn’t specialize in designing its own chipsets. Rather, the company offers industry-leading fabrication services that bring semiconductor designs to life.

This puts TSMC in a unique position as the company stands to benefit from rising spend in AI infrastructure over the coming years, regardless of which specific chipsets are witnessing the most demand.

Looked at another way, investors in TSMC need not overanalyze which chip company will sell the most graphics processing units (GPUs). Rather, an investment in TSMC could be viewed similarly to a call option on ongoing investment in data center infrastructure and AI chips for the long term.

Data by YCharts.

While TSMC has witnessed some notable valuation expansion throughout the AI revolution, the company’s forward price-to-earnings (P/E) multiple of 25 is still reasonable. Unlike AMD, I do not think rising competition is what concerns investors over a position in TSMC, though.

Rather, it’s geopolitical tensions with China that give way to uncertainty over TSMC’s growth prospects. Given the company’s ongoing investments in geographic expansion, though, I think the concerns over China are exaggerated and likely baked into the stock at this point.

As I wrote a few weeks ago, TSMC might be the best bargain in the AI market right now. Compelling secular tailwinds, combined with an industry-leading position in the fabrication market, strong institutional backing, and a reasonable valuation, make TSMC a no-brainer for long-term investors.