BlackRock Crypto Chief Joins SharpLink as Co-CEO After Spearheading Bitcoin, Ethereum ETFs
Introduction: A Major Move in Crypto Institutional Adoption
Joseph Chalom, BlackRock’s former head of digital assets strategy, has taken on a new role as co-CEO of SharpLink Gaming (NASDAQ: SBET), marking a significant shift in the institutional crypto landscape. Chalom played a pivotal role in launching BlackRock’s Bitcoin (IBIT) and Ethereum (ETHA) exchange-traded products (ETPs), which have become the largest of their kind globally. His move to SharpLink signals growing institutional confidence in Ethereum’s long-term financial infrastructure potential.
SharpLink, a publicly traded company with a massive Ethereum treasury exceeding 360,000 ETH ($1.3 billion), aims to leverage Chalom’s expertise to expand its yield-generating strategies. Despite the announcement, SharpLink’s stock (SBET) has dropped over 6% in a single day, continuing a recent downward trend. This article explores Chalom’s transition, SharpLink’s Ethereum-focused strategy, and what this means for institutional crypto adoption.
Joseph Chalom’s Legacy at BlackRock
Pioneering Institutional Crypto Adoption
As BlackRock’s managing director and head of strategic ecosystem partnerships, Joseph Chalom was instrumental in shaping the firm’s digital asset strategy. His leadership led to the launch of:
- IBIT: The world’s largest Bitcoin ETP
- ETHA: The world’s largest Ethereum ETP
- BUIDL: BlackRock’s USD Institutional Digital Liquidity Fund
These products marked BlackRock’s decisive entry into crypto, attracting billions in institutional capital and legitimizing digital assets as investable securities.
Why His Move to SharpLink Matters
Chalom’s departure from BlackRock—after two decades—to join a smaller but aggressively expanding firm like SharpLink suggests a strategic bet on Ethereum’s future. In his announcement on X (formerly Twitter), he emphasized:
“SharpLink is built on a clear belief: that Ethereum is becoming the foundation of global finance. And I couldn’t agree more.”
This aligns with SharpLink’s vision of positioning Ethereum as a yield-bearing reserve asset for corporations.
SharpLink’s Ambitious Ethereum Treasury Strategy
A $1.3 Billion ETH Treasury—And Growing
SharpLink has rapidly accumulated over 360,000 ETH ($1.3 billion at current prices), making it one of the largest corporate holders of Ethereum. In just the past week, it acquired nearly 80,000 ETH, signaling aggressive expansion. The company plans to raise up to $6 billion through a stock sale to further bolster its ETH holdings.
Yield-Generating Strategies: Staking and Restaking
Unlike traditional corporate treasuries that hold cash or bonds, SharpLink treats Ethereum as a productive asset by engaging in:
- Staking: Earning rewards by securing the Ethereum network
- Restaking: Enhancing yields via protocols like EigenLayer
- Other DeFi Strategies: Potentially including liquidity provisioning and lending
Chalom framed this approach as building “a bridge between institutional capital and Ethereum-native yield, packaged in a single public equity.” Essentially, SharpLink allows traditional investors to gain exposure to crypto-native yields without directly holding ETH—a key differentiator from ETFs.
Market Reaction: Why Is SBET Down Despite the News?
SharpLink Stock (SBET) Performance
Despite Chalom’s high-profile appointment, SBET shares fell over 6% on the day of the announcement and are down more than 31% over the past five trading days. Possible reasons include:
- Profit-Taking: The stock had surged earlier this year amid ETH price appreciation.
- Macro Uncertainty: Broader market conditions may be affecting risk assets.
- Dilution Concerns: Investors might be wary of the proposed $6 billion stock sale increasing supply.
However, long-term investors could see this as an accumulation opportunity if SharpLink successfully scales its treasury strategy.
Comparing SharpLink vs. BlackRock’s Crypto Offerings
| Feature | SharpLink (SBET) | BlackRock (IBIT/ETHA) |
|-----------------------|--------------------------------------|--------------------------------------|
| Asset Focus | Ethereum (ETH) | Bitcoin (IBIT), Ethereum (ETHA) |
| Structure | Publicly traded company | Exchange-traded products (ETPs) |
| Yield Generation | Staking, restaking, DeFi strategies | No direct yield (spot ETF structure) |
| Investor Access | Equity shareholders | Traditional ETF investors |
While BlackRock offers passive exposure via ETFs, SharpLink provides an active yield-generating model—potentially appealing to institutions seeking higher returns beyond simple price appreciation.
Industry Perspectives: What Leaders Are Saying
Joseph Lubin, Consensys CEO and SharpLink chairman, stated:
“Few executives in the world have had the kind of impact Joseph has had in unlocking institutional adoption of digital assets… His decision to join SharpLink is a resounding validation of our ETH treasury strategy.”
This endorsement reinforces SharpLink’s credibility as an institutional-grade vehicle for Ethereum exposure.
Conclusion: What This Means for Crypto Markets
Joseph Chalom’s move from BlackRock to SharpLink underscores two major trends:
- Institutionalization of Ethereum: Corporations are increasingly treating ETH as a treasury asset akin to Bitcoin in 2020-2021.
- Beyond Passive ETFs: Active yield strategies (staking/restaking) are gaining traction among institutional players seeking enhanced returns.
What to Watch Next:
- Will other firms follow SharpLink’s lead in building ETH-based treasuries?
- How will regulatory developments impact staking/restaking strategies?
- Can SBET rebound amid broader market conditions?
For now, Chalom’s transition marks another milestone in crypto’s maturation—one where Ethereum takes center stage in global finance.