Ethereum beats memory ETF by 72% as AI capital rotates into crypto

Ethereum beat the Roundhill Memory ETF by 72 percentage points between June 25 and July 21, a sign AI money is shifting from semiconductor stocks into blockchain infrastructure.

"AI downstream relative performance continues to strengthen — ETH versus DRAM relative outperformance in the past month gained to 7,200 basis points, or 72 percentage points," Lee, who co-founded Fundstrat and chairs BitMine Immersion Technologies, said in a July 21 post.

ETH rose 24% in the measurement window to trade near $1,921, up 1.5% on the day and 10.9% over 30 days, according to BeInCrypto data. The DRAM ETF, launched by Roundhill in April as the first fund dedicated to memory chipmakers, raised $6.5 billion in 27 trading days — the fastest ETF launch on record — before sliding 38% from its June 25 peak of $81.34. SK Hynix and Samsung Electronics account for about 41% of the fund's holdings. ETH remains 61% below its August 2025 peak of $4,946.

Lee's thesis rests on Ethereum serving as the settlement layer for autonomous AI systems. He points to BlackRock's tokenized BUIDL fund and Robinhood Chain's ETH-denominated fee structure as evidence that Wall Street is building on Ethereum, not just trading it. He compared ETH's current position to Amazon before it launched AWS, arguing the real value proposition has not fully materialized. Lee reiterated a $250,000 long-term price target, calling current levels "future optionality at a discount."

Fundstrat's analysis ties Ethereum's upside to converging forces: ETF inflows, whale staking activity, decentralized finance growth, and what the firm describes as multi-trillion-dollar growth opportunities driven by AI adoption. Lee has also increased his personal Ethereum holdings, recent disclosures indicate.

Memory ETF Slide May Be a Reset, Not a Rotation

The memory story is not dead. Jefferies expects memory prices to climb about 50% this quarter, and supply is so tight that a US lawsuit accuses chipmakers of engineering a 700% DRAM price spike. The ETF's decline may reflect a correction after its record-breaking launch rather than a structural shift away from semiconductors. SanDisk fell 14%, Micron 5%, and Seagate 10% in a single July session on memory supply glut fears.

What to Watch in the Coming Weeks

Memory earnings and Ethereum ETF flows in the coming weeks will determine whether Lee's rotation thesis holds or the memory sector simply needed a reset. BitMEX co-founder Arthur Hayes added $2.53 million in ETH on Monday, suggesting that at least one major whale is betting on the former. Lee's BitMine holds 5.77 million ETH, about 4.8% of all supply — if his rotation call wins, he wins with it.

This article is for informational purposes only and does not constitute investment advice.