ETH 2.0

Bank

MSTR

<h3 id="h-key-insights" class="wp-block-heading"><strong>Key Insights:</strong></h3><ul class="wp-block-list"><li>Bank of America is reportedly rotating out of MSTR and into Ethereum crypto.</li><li>ETH 2.0 total value staked clocks a new all-time high even as the Ethereum crypto price struggles to recover above $2,000.</li><li>Ethereum exchange reserves drop to a new multi-year low, and the number of new contracts has almost doubled over the last 2 years.</li></ul><p class="wp-block-paragraph">Ethereum crypto may be stealing the spotlight away from Bitcoin and MicroStrategy’s MSTR stock. For a while now, institutional attention has primarily been focused on BTC and MicroStrategy, and that appears to be changing.</p><p class="wp-block-paragraph">Bank of America, one of the largest global financial institutions, might be shifting its focus toward&nbsp;<a href="https://www.thecoinrepublic.com/2026/08/15/cboe-seeks-sec-approval-for-first-u-s-3x-bitcoin-and-ether-etfs/" rel="noopener noreferrer nofollow">Ethereum</a>. Recent reports revealed that the bank has been reducing its investment in Bitcoin while increasing its stake in Ethereum.</p><p class="wp-block-paragraph"><a href="https://x.com/ETH_Daily/status/2089698836872568993" rel="noopener noreferrer nofollow">Ethereum Daily reported</a> that Bank of America increased its holdings of a spot Ethereum ETF to approximately $23.6 million in Q2.</p><div class="wp-block-image"><figure class="aligncenter size-full"><img width="896" height="550" src="https://www.thecoinrepublic.com/wp-content/uploads/2026/08/6f6d33aa8ce4e05e32dbf1e82597b81dc336f43119c228d012a873aafeed7764-1.png" alt="Source: Ethereum Daily" class="wp-image-2488374"><figcaption class="wp-element-caption"> Source: Ethereum Daily </figcaption></figure></div><p class="wp-block-paragraph">The analysis suggests that one institution increasing its Ethereum exposure may not necessarily signal a market-wide shift. However, it was noteworthy, given that Bank of America is one of the largest financial institutions. The fact that it finds Ethereum crypto appealing was certainly a clear statement.</p><h2 id="h-eth-2-0-tvl-signals-rising-ethereum-crypto-accumulation" class="wp-block-heading"><strong>ETH 2.0 TVL Signals Rising Ethereum Crypto Accumulation</strong></h2><p class="wp-block-paragraph">ETH institutional demand remained lower than Bitcoin’s. Farside Investors’ data showed that <a href="https://farside.co.uk/eth/" rel="noopener noreferrer nofollow">Ethereum ETFs</a> collectively acquired slightly over $102 million worth of ETH on Monday and Tuesday. On the other hand, <a href="https://farside.co.uk/btc/" rel="noopener noreferrer nofollow">Bitcoin ETFs</a> acquired $486.8 million worth of Bitcoin during the same period.</p><p class="wp-block-paragraph">Nevertheless, additional on-chain data suggest that Ethereum crypto might be gearing up for a long-term recovery. Ethereum’s total value staked has been growing aggressively over the last 8 months.</p><p class="wp-block-paragraph">To put things into perspective, ETH 2.0 TVL jumped from as low as 35.9 million ETH to 42.3 million ETH as of 19 August. A difference of 6.4 million ETH is worth about $12.3 billion at the current value.</p><div class="wp-block-image"><figure class="aligncenter size-full"><img width="975" height="512" src="https://www.thecoinrepublic.com/wp-content/uploads/2026/08/1b5182ec50bb1341a56d9f77ab630875f4b078a9a3d282a6583eec1f6d2a4a30-1.png" alt="Ethereum Crypto Total Value Staked | Source: CryptoQuant" class="wp-image-2488356"><figcaption class="wp-element-caption"> Ethereum Crypto Total Value Staked | Source: CryptoQuant </figcaption></figure></div><p class="wp-block-paragraph">Such a substantial amount of ETH staked means quite a number of investors have been buying the altcoin on the way down. They have been staking ETH, meaning they have been intentionally staking for long-term value gains, thereby reducing potential sell pressure.</p><h2 id="h-ethereum-exchange-reserves-fall-to-multi-year-lows-amid-growing-contracts" class="wp-block-heading"><strong>Ethereum Exchange Reserves Fall to Multi-Year Lows Amid Growing Contracts</strong></h2><p class="wp-block-paragraph">The rising total ETH value staked also coincided with other key observations supporting the accumulation narrative. For example, <a href="https://cryptoquant.com/asset/eth/chart/exchange-flows/exchange-reserve?exchange=all_exchange&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=line" rel="noopener noreferrer nofollow">Ethereum exchange reserves</a> fell to 15.07 million ETH as of 19 August, its lowest level recorded in years.</p><div class="wp-block-image"><figure class="aligncenter size-full"><img width="975" height="535" src="https://www.thecoinrepublic.com/wp-content/uploads/2026/08/191ebccec72b22ad82a3b3a35f3b1cf3a6534721e940a44b46cd08a8a93742f2-2.png" alt="Ethereum exchange reserves | Source: CryptoQuant" class="wp-image-2488347"><figcaption class="wp-element-caption"> Ethereum exchange reserves | Source: CryptoQuant </figcaption></figure></div><p class="wp-block-paragraph">The declining exchange reserves reflect accumulation, especially at recent lows, which have coincidentally been accumulation zones in the past. It also signals that long-term investors continue to take advantage of discounted prices.</p><p class="wp-block-paragraph">While these factors signal accumulation, overall demand remained low. This reflects the existing market uncertainty, meaning demand is yet to reach the critical mass for a major pivot or major rally.</p><p class="wp-block-paragraph">These metrics underscore what has been happening under the hood in the speculative front. The network activity side of things also flashed healthy signals.</p><p class="wp-block-paragraph">For example, the number of Ethereum contracts recently crossed over 71 million.&nbsp; A gain of almost 11 million compared to the number of contracts at the start of the year.</p><div class="wp-block-image"><figure class="aligncenter size-full"><img width="975" height="513" src="https://www.thecoinrepublic.com/wp-content/uploads/2026/08/d7faadc9bda2b42649ecf2166cf4476add2431e4eba7862920003fd9553adaa4-2.png" alt="Ethereum contracts | Source: TradingView" class="wp-image-2488329"><figcaption class="wp-element-caption"> Ethereum contracts | Source: TradingView </figcaption></figure></div><p class="wp-block-paragraph">Smart contracts executed on the Ethereum network underscore real-world value on the network. In other words, this signals that the bear market has not exactly slowed organic network operations.</p><p class="wp-block-paragraph">Organic network growth may also strengthen Ethereum’s long-term value proposition. This, combined with declining exchange reserves and rising institutional appeal, could signal long-term potential. <a href="https://www.thecoinrepublic.com/2026/08/19/ethereum-price-eyes-1900-retest-as-glamsterdam-upgrade-bags-major-advancement/" rel="noopener noreferrer nofollow">Ethereum crypto price</a> just surged above $2,000 in its first major attempt to exit consolidation since</p><p>The post <a href="https://www.thecoinrepublic.com/2026/08/20/bank-of-america-favors-ethereum-crypto-over-mstr-on-long-term-potential/" rel="noopener noreferrer nofollow">Bank of America Favors Ethereum Crypto Over MSTR on Long-Term Potential</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.</p>

Bank of America Favors Ethereum Crypto Over MSTR on Long-Term Potential

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