Analyst Doctor Profit has published a long-term investment thesis centered on Circle, Coinbase, and Ethereum, describing the three as the core of an evolving digital finance ecosystem. The report arrives as U.S. lawmakers advance cryptocurrency legislation — including the recently enacted GENIUS Act, which establishes a federal regulatory framework for payment stablecoins — institutions expand tokenization initiatives, and regulated stablecoin adoption grows across financial markets. Circle, which has filed for a U.S. public listing, would be among the first major stablecoin issuers to trade on public markets under the new stablecoin rules.

In his analysis shared via X, Doctor Profit argued that these entities form what he called the "Galactic Three" — a tightly interconnected network reinforced by BlackRock's expanding presence in digital assets.

BlackRock Connections Underpin the Thesis

According to Doctor Profit, BlackRock's deepening involvement across the digital asset sector strengthens the ties between Circle, Coinbase, and Ethereum. Circle manages the majority of USDC reserves through a BlackRock-managed fund, while Coinbase serves as custodian for BlackRock's iShares Bitcoin Trust and multiple other U.S. crypto ETFs.

The analyst also emphasized Coinbase's ownership stake in Circle and its revenue-sharing agreement linked to USDC reserves. Additionally, Coinbase's Base network settles transactions on Ethereum, creating another structural link within the ecosystem.

Ethereum further hosts BlackRock's BUIDL tokenized Treasury fund. Doctor Profit noted that Ethereum currently leads the tokenized real-world asset market, with approximately $16.6 billion in total value locked. Other major asset managers have launched competing tokenized products — including Franklin Templeton's OnChain U.S. Government Money Fund (FOBXX) and Ondo Finance's tokenized Treasury offerings — broadening institutional participation on blockchain infrastructure beyond BlackRock alone.

Regulatory Developments and Tokenization Infrastructure

Doctor Profit pointed to the pending CLARITY Act as a potential source of expanded legal certainty for digital asset markets. The legislation, which has advanced through the House Financial Services Committee, addresses token classifications, exchange oversight, stablecoins, decentralized finance, and insolvency protections.

He also cited the Depository Trust & Clearing Corporation's tokenization initiative, which reportedly relies on Besu — an Ethereum client — for blockchain infrastructure supporting tokenized securities.

Portfolio Allocation and Quantum Security Concerns

While maintaining a bullish stance on Bitcoin, Doctor Profit disclosed a current portfolio allocation of 60% Ethereum and 40% Bitcoin. He referenced the recently announced Bitcoin Security Consortium and suggested that Bitcoin's future roadmap could eventually include a quantum-resistant upgrade.

Citing Coinbase research, the analyst noted that between 20% and 50% of older Bitcoin wallet formats could face future quantum-related security risks.

He also highlighted growth figures from his report: Circle's USYC tokenized Treasury product has expanded to approximately $3 billion, while USDC processed roughly $1.21 trillion in transaction volume during June.