Ethereum Rally Fueled by Tax Loophole and Institutional Demand

Ethereum’s price is surging toward new all-time highs as analysts predict a potential breakthrough fueled by institutional demand and a little-known tax loophole. Crypto analyst Brandon Hong believes the Internal Revenue Code’s 351 tax exchange mechanism could drive significant investment, particularly from large holders, leading to further price acceleration. This loophole allows long-term Ethereum investors to exchange their crypto for shares in treasury vehicles without triggering capital gains taxes. This incentive is attracting institutional interest, including those utilizing similar strategies as MicroStrategy’s Bitcoin investments.