Analyzing BlackRock's recent report titled "Re-Underwriting Bitcoin," I come to the conclusion that its findings extend far beyond an analysis of the first cryptocurrency. The document, which explains bitcoin's correction of more than 50% from its October 2025 high by capital flows into AI funds, at first glance paints a grim picture for BTC. However, Tom Lee, a well-known entrepreneur and co-founder of Fundstrat, saw in this report an unexpected argument in favor of Ethereum.
Lee's key idea is that the rapid growth of artificial intelligence capabilities, which BlackRock calls bitcoin's main competitor for capital, actually opens new horizons for Ethereum. As AI systems develop, they begin to act collectively, coordinating their steps. It is here, according to Lee, that blockchain and smart contracts come into play, giving humanity the necessary control over the behavior of such autonomous systems.
In his argument, Lee draws a direct parallel between AI and robotics. He claims that Ethereum is the crucial base layer (L1) on which decentralized applications for managing these technologies will be built. "We see great potential in ETH as a continuation of the AI development story," he emphasizes, extending this logic to robots as well, which today already demonstrate the ability to beat professional athletes.
Where Lee's position shows weakness
Notably, the BlackRock report itself contains not a single mention of Ethereum, robotics, or verifying AI actions through blockchain. The document's authors view AI funds exclusively as competitors for capital, not as a potential area for smart contract applications. Thus, Tom Lee in his conclusions goes far beyond the data presented in the report.
It is also important to consider Lee's personal interest. His company Bitmine Immersion Technologies holds about 4.8% of all issued ETH on its balance sheet, making it one of the largest institutional holders of this asset. Such a position directly motivates him to link Ethereum to major market themes, including bitcoin strategies of large corporations. As of August 19, 2026, the ETH price is holding around $1908.
Whether Lee's idea about the connection between AI, robotics, and blockchain will hold up depends on the emergence of real examples of verifying autonomous systems through a distributed ledger. For now, this is more of a theoretical construct than a practical reality.
My analysis: although the direct connection between the BlackRock report and Ethereum seems strained, the long-term thesis of blockchain as infrastructure for AI control has a rational core. However, investors should separate fundamental narratives from current market conditions, which so far do not confirm a trend reversal for ETH.