On September 9, 2025, significant developments emerged in the traditional finance sector that greatly uplifted Ethereum (ETH): global asset management giant BlackRock updated its S-1 filing materials for the proposed spot Ethereum ETF. This move closely followed the success of its Bitcoin ETF (IBIT) and became the absolute focus of the cryptocurrency market that day.
The key significance of this revised application lies in the adoption of a cash-based trading structure, which aligns with the regulatory framework that explicitly classifies Ethereum as a commodity in the (Clarity Act) passed in July in the United States. This act clearly delineates regulatory responsibilities, categorizing Bitcoin, Ethereum, and other 'mature blockchain' tokens as commodities, to be regulated by the Commodity Futures Trading Commission (CFTC), thus clearing critical hurdles for ETF approval. The market generally views this as a substantial step towards the integration of traditional finance and crypto assets.
The entry of institutional giants has injected unprecedented compliance credibility into Ethereum. As a financial giant managing trillions of dollars, BlackRock's move sends a clear signal to the traditional capital markets: Ethereum has become a mature asset class worthy of large-scale allocation. Historical experience shows that after the approval of the first batch of Bitcoin spot ETFs in the US in 2024, over $12 billion in funds were attracted, while similar products listed in the Asian market this April saw nearly HKD 100 million in trading volume on their first day, all indicating the strong appeal of compliance channels to incremental funds.
After the announcement, the price of Ethereum immediately rose, boosting the sentiment of the entire cryptocurrency market. Investors view this as a precursor to asset value reassessment, especially in the context of multiple favorable factors overlapping.
From a technical perspective, Ethereum's deflationary attributes continue to strengthen. Since the 'Merge' upgrade, the EIP-1559 burning mechanism has meant that the more active the network is, the greater the amount of ETH burned. Data shows that the tokenization scale of blockchain assets grew over 100% in the first half of 2025, with 75% of assets managed on Ethereum and its Layer 2 networks, and the ongoing ecological activities provide solid support for the deflationary narrative.
In terms of the staking economy, institutional participation continues to rise. Taking SharpLink as an example, since launching its Ethereum treasury strategy in June, it has accumulated 1388 ETH in staking rewards. The current annualized yield of 3-4% is quite attractive to institutional funds in a low-interest-rate environment, and the upcoming Pectra upgrade will further optimize the staking mechanism — increasing the maximum staking amount per validator from 32 ETH to 2048 ETH through EIP-7251, significantly reducing operational costs for large institutions.
Ecological expansion is also gaining momentum. Layer 2 solutions like Arbitrum and Optimism continue to grow, not only reducing transaction costs but also becoming important infrastructure for asset tokenization. Mainstream brokerages like Robinhood have started to use the Arbitrum network to launch stock tokenization products, and this innovative application is continuously expanding the value boundaries of Ethereum.
However, the market also needs to maintain a rational perspective. Although the (Clear Law) brings regulatory certainty, the SEC's attitude towards crypto assets remains uncertain. Historical patterns indicate that the market phenomenon of 'anticipated rise, landing adjustment' has occurred multiple times during the ETF approval process. Furthermore, the cryptocurrency market itself is highly volatile, and whether BlackRock's application will ultimately be approved remains uncertain.
It is noteworthy that the Pectra upgrade brings not only optimization of the staking mechanism, but also introduces account abstraction features through EIP-7702, enabling innovations such as programmable wallets and gasless transactions, which could fundamentally improve user experience and enhance ecological activity. This technological iteration, combined with the resonance effect of institutional capital entering the space, could become the core driving force behind the long-term value growth of Ethereum.
Overall, the progress of BlackRock's spot Ethereum ETF application is not only a reflection of traditional finance accelerating its layout in crypto assets, but also a sign of the recognition of Ethereum's ecological maturity. With the gradual clarification of the regulatory framework, ongoing technological innovation, and orderly entry of institutional funds, Ethereum is entering a new stage of development, but investors still need to be wary of short-term volatility risks and rationally grasp the market rhythm.
