How Institutions Fueled Bitcoin and Ethereum Surge: Can the Strategy Pump BNB, Solana?

The cryptocurrency market has seen dramatic price surges in recent months, with Bitcoin (BTC) and Ethereum (ETH) leading the charge. A key driver behind these rallies has been the strategic investments by companies

Benjamin

• Updated: Monday, July 21, 2025, 12:30

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At a Glance

• Bitcoin’s Pump: The Corporate Playbook
• Ethereum’s Turn: Replicating the Bitcoin Strategy
• Can Companies, Institutions, Strategic Reserves Strategy Pump BNB and Solana?

The cryptocurrency market has seen dramatic price surges in recent months, with Bitcoin (BTC) and Ethereum (ETH) leading the charge. A key driver behind these rallies has been the strategic investments by companies and institutions, often through exchange-traded funds (ETFs) and venture capital funds, which have significantly boosted market confidence and liquidity. This article explores how companies successfully pumped Bitcoin’s price, how they’re applying a similar playbook to Ethereum, and whether this strategy could be replicated for other tokens like BNB and Solana.

Bitcoin’s meteoric rise, particularly since the approval of spot Bitcoin ETFs in 2024, has been fueled by institutional capital. Companies like BlackRock, with its iShares Bitcoin Trust (IBIT), and others such as Franklin Templeton have poured billions into Bitcoin, creating a positive feedback loop of investment and price appreciation. For instance, by May 2025, Bitcoin and Ethereum ETFs commanded $153 billion and $17.4 billion respectively ($170.4 billion collectively) in assets under management, with BlackRock’s IBIT generating significant revenue.

The strategy hinges on several key elements:

1. Spot ETFs as Catalysts: Spot Bitcoin ETFs, which allow investors to gain exposure to BTC through traditional stock markets, have been a game-changer. Unlike futures-based ETFs, spot ETFs hold actual Bitcoin, increasing demand and reducing available supply, which drives prices higher. The launch of these ETFs in the U.S. and Canada has been credited with kickstarting Bitcoin’s bull run, with prices approaching $122,000 by July 2025.

2. Institutional Accumulation: Sovereign wealth funds like Mubadala Investments and state entities like the Wisconsin Investment Board have significantly increased their Bitcoin holdings. For example, Mubadala added 490,000 IBIT shares valued at $29 million in Q1 2025, while Wisconsin held over 6 million IBIT shares worth $350 million before exiting its position. These large-scale investments signal institutional confidence, attracting retail investors and amplifying price surges.

3. Regulatory Tailwinds: A more favorable regulatory environment, particularly in the U.S. with the anticipated passage of the GENIUS and CLARITY Acts, has encouraged institutional participation. These acts are expected to legitimize crypto trading and settlement, further boosting Bitcoin’s appeal.

4. Market Sentiment and Media Hype: The influx of institutional money, coupled with media coverage of ETF approvals and corporate investments, creates a self-reinforcing cycle. As prices rise, more investors pile in, fearing they’ll miss out, which further pumps the price.

This strategy propelled Bitcoin from a low of around $16,000 in 2022 to nearly $122,000 by July 2025, a 760%+ increase.

Ethereum has recently shown signs of following Bitcoin’s trajectory, with a 20% weekly gain in July 2025, pushing its price to $3,820. Companies are now applying a similar playbook to Ethereum, leveraging spot ETFs and institutional interest to drive its price higher.

1. Spot Ethereum ETFs: Following Bitcoin’s success, spot Ethereum ETFs have gained traction. Canada led the way with Ether staking ETFs, some of which generate enough staking rewards to offset management fees, creating a “positive-carry” investment vehicle. In the U.S., Bloomberg analysts estimate a 95% chance of additional Ethereum ETF approvals by the end of 2025, further increasing institutional exposure. These ETFs have already amassed around $1 billion in assets under management in Canada alone.

2. Institutional Backing: Companies like Coinbase, Kraken and Robinhood are investing heavily in Ethereum-based infrastructure, such as tokenized U.S. equities and stablecoin settlement systems. This institutional commitment mirrors the early Bitcoin ETF frenzy, with Ethereum benefiting from its established developer community and smart contract dominance.

3. Technical Improvements: Ethereum’s upcoming shift to zero-knowledge (ZK)-based block execution, expected within 12 months, aims to enhance scalability and reduce reliance on Layer 2 solutions. This technical upgrade could attract more developers and investors, further fueling Ethereum’s price.

However, Ethereum faces challenges, including high gas fees and slower transaction speeds compared to competitors like Solana. Despite a 65% gain in the past month, Ethereum has underperformed Bitcoin and Solana over the past two years, with its price down over three years compared to Solana’s rise. Nevertheless, the institutional push and regulatory clarity are positioning Ethereum for a potential breakout in 2025.

The success of Bitcoin and Ethereum raises the question: can the same strategy be applied to other tokens like BNB and Solana? Both tokens have unique strengths and challenges, but the Bitcoin/Ethereum playbook could be adapted with some caveats.

BNB, the native token of the Binance ecosystem, benefits from its integration with the world’s largest cryptocurrency exchange. Its market cap briefly surpassed Solana’s in December 2023, driven by an 12% surge. Here’s how the Bitcoin/Ethereum strategy could apply:

1. ETFs and Institutional Investment: While spot BNB ETFs are not yet available, the success of Bitcoin and Ethereum ETFs could pave the way. Binance’s $2 billion investment from Abu Dhabi-based MGX in March 2025 signals growing institutional interest in the Binance Smart Chain (BSC). BSC’s high trading volume, surpassing Solana and Ethereum with near $2 billion in DEX trading in March 2025, suggests strong ecosystem demand.

2. Ecosystem Growth: BNB’s utility in DeFi and NFTs, coupled with Binance’s continuous innovation, mirrors Ethereum’s smart contract appeal. However, BNB’s growth has been hampered by regulatory challenges, including SEC and CFTC lawsuits against Binance, which led to former CEO Changpeng Zhao’s resignation. A more favorable regulatory environment could unlock BNB’s potential for a Bitcoin-like pump.

3. Challenges: BNB’s centralized nature, with fewer nodes than Solana or Ethereum, raises decentralization concerns. Additionally, its slower year-to-date growth (34.3% vs. Bitcoin’s 156% and Ethereum’s 102% in 2023) suggests it may need stronger catalysts to match their performance.

Solana has emerged as a formidable rival to Ethereum, with a 2,000% price increase since its 2022 lows and consistent outperformance in trading volume. Its potential for a Bitcoin-style pump is promising.

1. Spot Solana ETFs: The launch of North America’s first spot Solana ETFs in Canada in April 2025, followed by the U.S.-listed REX-Osprey ETF (SSK) in July 2025, mirrors Bitcoin’s ETF-driven rally. These ETFs, which include staking rewards, have attracted significant inflows ($12 million on SSK’s first trading day), and Bloomberg analysts give a 95% chance of further approvals by year-end 2025.

2. Institutional and Retail Momentum: Solana’s high-speed, low-cost blockchain has drawn institutional interest, with $776 million in daily capital inflows since September 2023. Its memecoin ecosystem, particularly through platforms like Pump.fun, has driven massive retail activity, with over $575 million in fees generated since March 2024. High-profile memecoins like Goatseus Maximus ($600 million market cap in two weeks) have further boosted Solana’s visibility.

3. Technical Strengths: Solana’s proof-of-history and proof-of-stake mechanisms enable it to process over 4,000 transactions per second at a fraction of Ethereum’s cost ($0.00025 vs. $0.05 per transaction). This scalability makes it attractive for DeFi, NFTs, and AI infrastructure projects, positioning it for long-term growth.

4. Challenges: Solana’s history of network outages, including a 17-hour downtime in September 2021, raises concerns about stability. Additionally, SEC lawsuits alleging that SOL is an unregistered security could deter institutional investors unless regulatory clarity improves.

The Bitcoin/Ethereum playbook—leveraging spot ETFs, institutional investment, regulatory tailwinds, and market sentiment—can theoretically be applied to other tokens, but success depends on several factors:

1. Ecosystem Strength: Tokens like BNB and Solana benefit from robust ecosystems (Binance Smart Chain and Solana’s DeFi/NFT platforms, respectively). Tokens with weaker use cases or developer communities, like some memecoins, may struggle to sustain a pump without fundamental value.

2. Regulatory Environment: Bitcoin and Ethereum have gained institutional trust partly because they’re less likely to be classified as securities. Tokens like Solana, which face SEC scrutiny, need regulatory clarity to attract similar investment.

3. Market Liquidity and Adoption: High trading volumes and institutional backing are critical. Solana’s $776 million daily inflows and BNB’s $1.6 billion DEX volume demonstrate this, but smaller tokens may lack the liquidity to support ETF-driven pumps.

4. Technical Innovation: Solana’s scalability and BNB’s exchange integration provide competitive edges. Tokens without unique technological advantages may not attract the same level of investor interest.

Companies have successfully pumped Bitcoin and are now applying the same strategy—spot ETFs, institutional accumulation, and regulatory optimism—to Ethereum, with early signs of success. BNB and Solana are well-positioned to replicate this strategy due to their strong ecosystems, institutional interest, and emerging ETF markets. However, challenges like regulatory hurdles and network stability could limit their potential. Other tokens can adopt this playbook, but only those with robust fundamentals and market support are likely to succeed. As the crypto market evolves, investors should conduct thorough research and consider the risks before chasing the next pump.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments carry significant risks, and readers should consult a financial advisor before making investment decisions.

This article was originally published on: Jul 21, 2025 at 12:30 PM

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