- Doctor Profit highlighted Circle, Coinbase, and Ethereum as a connected ecosystem.
- The thesis centers on tokenization, USDC growth, and regulatory progress.
- The analyst disclosed a portfolio allocation of 60% Ethereum and 40% Bitcoin.
Analyst Doctor Profit outlined a long-term investment thesis centered on Circle, Coinbase, and Ethereum, arguing they sit at the center of an evolving digital finance ecosystem. He published the report as lawmakers continue advancing crypto legislation in the United States, while institutions expand tokenization efforts and regulated stablecoin adoption across financial markets.
BlackRock Ties Drive Investment Thesis
According to Doctor Profit, BlackRock’s growing role across digital assets strengthens the connections between Circle, Coinbase, and Ethereum. He said Circle manages most USDC reserves through a BlackRock-managed fund, while Coinbase serves as custodian for BlackRock’s iShares Bitcoin Trust and several other U.S. crypto ETFs.
He also highlighted Coinbase’s ownership stake in Circle and its revenue-sharing agreement tied to USDC reserves. Meanwhile, Coinbase’s Base network settles on Ethereum, creating another connection within what he called the “Galactic Three.”
According to the analyst, Ethereum also hosts BlackRock’s BUIDL tokenized Treasury fund. He added that Ethereum currently leads the tokenized real-world asset market, with about $16.6 billion in value locked.
Regulation and Tokenization Remain key Focus
Doctor Profit also pointed to the pending CLARITY Act, saying it could provide additional legal certainty across digital asset markets. He noted that the legislation addresses token classifications, exchange oversight, stablecoins, decentralized finance, and insolvency protections.
He further cited the Depository Trust & Clearing Corporation’s tokenization initiative. According to his report, the platform relies on Besu, an Ethereum client, for blockchain infrastructure supporting tokenized securities.
Bitcoin Allocation Differs From Previous Cycles
Although Doctor Profit said he remains bullish on Bitcoin, he disclosed that his portfolio now holds 60% Ethereum and 40% Bitcoin. He argued that Bitcoin’s future could eventually involve a quantum-resistant upgrade, referencing the recently announced Bitcoin Security Consortium.
The analyst also cited Coinbase research estimating that between 20% and 50% of older Bitcoin wallet formats could face future quantum-related risks. He added that Circle’s USYC tokenized Treasury product has grown to roughly $3 billion, while USDC handled approximately $1.21 trillion in June transaction volume, according to figures included in his report.