Markets Outlook (CoinDesk)

Episode: Why BlackRock’s Former Crypto Head Is Betting on Ethereum
Date: January 26, 2026
Guests: Joseph Shalom (CEO of SharpLink, former head of digital assets strategy at BlackRock)
Host: Jen Senates

Overview

This episode centers on the shifting dynamics in crypto markets, with a deep dive into why institutional interest—especially in Ethereum—is intensifying despite macroeconomic and geopolitical turbulence. Joseph Shalom, now the CEO of Sharplink and formerly BlackRock’s crypto strategist, shares straight insights into Ethereum's dominance, the Solana-vs-Ethereum debate, the impact of quantum computing and AI, and the evolving strategies of digital asset treasuries.

Key Discussion Points & Insights

1. Crypto Market Sentiment, Rotation to Commodities

Timestamps: 00:00, 01:21, 03:06

• Short-Term Trading Challenges:
  Shalom cautions that trading crypto on a 1–2 day horizon is difficult due to market volatility and recent shifts of speculative capital.

  “A lot of speculative money in the last month or so has been going into gold... Silver trading as a meme coin that you haven’t seen in almost a generation.” (A, 00:00; 03:06)

• Factors Pressuring Crypto:

  • Macro and geopolitical uncertainty.
  • Some longstanding crypto holders (“OGs”) selling big BTC blocks, including due to quantum computing fears.
  • Price action in BTC and ETH has underperformed despite bullish industry news.

  “We are in a period of both geopolitical and macro uncertainty. The macro setup is actually stealing wind from the sails from all this great news...” (A, 01:21)

• Advice to Investors:

  • Take a longer-term view, ignore short-term noise.
  • Focus on the institutional landscape and moves toward asset tokenization—especially on Ethereum.

  “Actually people in crypto have done better by buying and holding when you have a thesis than in day trading.” (A, 03:06)

2. Ethereum’s Institutional Momentum

Timestamps: 03:06, 05:45, 06:12

• Tokenization Wave on Ethereum:
  Major financial institutions are “announcing at the top of their lungs” that all assets will be tokenized, and almost universally on Ethereum.

  “Larry Fink and BlackRock essentially say all assets will be tokenized... Ethereum will be that toll road for tokenization.” (A, 03:06)

• Davos Takeaway:
  Crypto, particularly Ethereum, was a central theme among global leaders.

• ETH vs. Solana—Which Chain for Wall Street?:
  Shalom goes beyond opinions, pointing to security, trust, and liquidity as Ethereum's core strengths for institutional use, while Solana may excel in less security-critical sectors (e.g., meme coins, gaming).

  “Ethereum leads in high quality assets in DeFi, tokenization and stablecoins by a factor of 10 to 1 over Solana and that gap is only getting larger... People are voting with their feet.” (A, 06:12)

3. The DeFi Flywheel: TVL Growth, Institution Adoption

Timestamp: 07:37

• Next Wave of Tokenization:

  • From individual funds and stocks to whole fund complexes and platforms.
  • Prediction: Tokenized real-world assets moving from $30B to trillions in the coming year.

  “You’re going to see fund complexes, platforms be tokenized… potentially go to trillions in the next year...” (A, 07:48)

• Bitcoin and Ethereum’s Relative Strength:
  Need to move past the macro/geopolitical overhang—expecting a cyclical upturn.

4. Regulatory Environment

Timestamp: 09:06

• US Market Structure Legislation:
  • Clarity Act may not be decisive; favorable signals and declining enforcement actions already providing regulatory clarity.
  • Long-term bets by major institutions indicate confidence.

  “Builders are there, the VCs are back... The regulatory clarity is already here.” (A, 09:31)

5. Quantum Computing & AI – Threats or Catalysts?

Timestamps: 10:32, 14:21, 16:04

• Quantum:

  • Timeline for quantum threat is shrinking.
  • Ethereum Foundation has formalized a “pole position” plan for quantum resistance.

  “Ethereum has a track record for over 10 years of delivering multiple major releases. And we have a lot of confidence that will happen.” (A, 10:54)

• AI as a Positive Force:

  • See agentic AI as a macro tailwind, not just a risk.
  • Envisions a future where AI agents manage wallets, rebalance portfolios, and expand DeFi access.

  “You’re going to start seeing yourself as almost having an asset manager in your wallet...” (A, 12:25)

  • Points listeners to ERC-8004—a new trustless agentic protocol proposal.

• Ethereum Was Built for the ‘Machine Economy’:

  “Now is the time we’re going to start seeing massive adoption of decentralized Rails... It might start in their consumer life, but it’s certainly coming very quickly in their financial lives.” (A, 14:36)

• AI Defensive Use:
  AI can also help defend smart contracts, not just attack—real-time monitoring, quicker bug detection.

• Corporate Staking as Added Security:

  • Major holders like Bitmine and Sharplink are staking at record levels, significantly strengthening network security.

  “When institutions start buying Ether to secure their transactions on-chain, it’s going to provide even more staked security.” (A, 16:04)

6. Sharplink’s Digital Asset Treasury Strategy

Timestamps: 17:27, 20:21

• Operational Model:

  • Largest ETH allocations among public companies, structured for yield through staking and “restaking” strategies (DeFi protocols, yield enhancement).
  • Maintains DeFi positions within regulated custody (Anchorage), bridging DeFi’s returns with institutional-grade security.

  “We deployed $170 million of our ETH, the largest public company deployment into DeFi… within a qualified custodian at Anchorage.” (A, 17:36)

• Response to Criticisms (e.g. Novogratz/Scaramucci):
  Focused on building businesses generating ETH-denominated revenue, leveraging permanent capital and an institutional management approach.

  “Crypto has never seen permanent capital and that’s a really good thing... we will build operations and businesses in the Ethereum ecosystem that will kick off ETH denominated revenue so it becomes a virtuous cycle.” (A, 20:21)

7. ETH Price Outlook and Closing Thoughts

Timestamp: 22:25

• Forecast:
  No specific price target, but expects increased Ethereum Layer 1/2 activity to drive price higher over quarters—not weeks.
  • Advocates exposure to ETH via Sharplink’s structure over ETFs due to fee advantages and exposure model.

  “If you’re a long-term investor and you believe that decentralized rails are going to rewrite the Wall Street market structure, now is the time to be owning Ether at this price.” (A, 22:38)

Notable Quotes & Memorable Moments

• Ethereum’s Institutional Edge:

  “It’s not my perspective… People are voting with their feet.” (A, 06:12)

• On AI Agentic Economies:

  “You’re going to start seeing yourself as almost having an asset manager in your wallet... It’s how people in traditional finance will seek returns.” (A, 12:25)

• Macro Perspective:

  “We’re at the early stages... Now is the time we’re going to start seeing massive adoption of decentralized Rails.” (A, 14:36)

• On Regulatory Progress:

  “The regulatory clarity is already here… it’s less of an issue if it passes this quarter or next.” (A, 09:31)

Key Timestamps

• 00:00 — Why short-term trading is challenging in crypto now
• 01:21 — Macro/geopolitical headwinds suppressing positive crypto news
• 03:06 — Institutional push for tokenization and the Ethereum edge
• 05:45 — Ethereum vs. Solana for Wall Street use cases
• 07:37 — Why TVL growth is poised to accelerate on Ethereum
• 09:06 — Market structure legislation and U.S. regulatory clarity
• 10:32 — Ethereum's preparations for quantum threats and AI's systemic impact
• 14:21 — AI as an adoption and efficiency catalyst
• 16:04 — Defending Ethereum against AI/quantum risks and the rise of corporate staking
• 17:27 — Sharplink’s Ethereum-focused treasury and innovative DeFi deployment
• 20:21 — Sustainable business models for digital asset treasuries
• 22:25 — ETH price outlook and why now is a good entry point for long-term investors

Final Takeaways

• Long-term commitment and conviction in Ethereum as the institutional blockchain for asset tokenization, DeFi, and stablecoins.
• Macro headwinds and market structure legislation are not deterring institutional buildup.
• Quantum and AI pose challenges but are also major enablers, especially for Ethereum’s infrastructure and use cases.
• Sharplink is modeling a new breed of public companies—ETH-backed, yield-generating, and operationally tied to DeFi's growth.

For those seeking a distilled view: Despite current price malaise and shifting narratives, the big bets—institutional money, technical development, and regulatory progress—are still flowing squarely toward Ethereum.