Ethereum: Entering a New Decade

Ethereum (ETH) remains one of the most recognized and influential projects in the crypto industry, firmly holding the second spot in market capitalization for years, just behind Bitcoin (BTC). Today, ETH boasts a market cap exceeding $300 billion, surpassing global giants like Coca-Cola, Philip Morris International, Samsung, and many others. Since its launch in July 2015, Ethereum has come a long way and celebrates its 10-year anniversary in July 2025. Let's celebrate this milestone! Buy or swap ETH on SimpleSwap and honor a decade of decentralized progress.

In this piece, we won’t dive deep into Ethereum’s history, but rather focus on its current state and why this asset is increasingly catching the attention of institutional investors.

Rising Interest

ETH faced significant pressure this year, with its price dropping below $1,400 in April. However, by late May, Ethereum was trading above $2,600 – a more than 80% surge from the April low.

May marked an important structural shift in the behavior of Ethereum market participants. According to CryptoRank, over 1 million ETH was withdrawn from centralized exchanges (CEX), representing approximately 5.5% of the ETH supply held on these platforms. This could signal a strategic pivot-investors bought the dip and are now choosing to hold rather than trade.

When assets leave exchanges, they become less available for immediate sale, reducing supply. In the presence of demand, this can sustain or even drive up prices.

Despite the massive outflows from exchanges, Ethereum’s TVL (Total Value Locked) dropped since mid-April. This suggests that holders are not reallocating funds into DeFi protocols but are instead storing ETH or moving it into staking–indicating long-term conviction rather than speculative behavior.

The correlation between ETH withdrawals and price increase confirms a supply crunch is underway.

Another key growth factor was the activation of the Pectra upgrade. It improves UX and introduces new features for validators and smart contracts, making Ethereum more appealing to both institutional players and long-term users.

This combination of technical upgrades, reduced exchange supply, and price growth is setting the stage for a shift in market dynamics. If the trend continues, ETH could enter a phase of sustained growth–driven primarily by the return of institutional interest. 

BlackRock, ETH, and Staking: A New Wave of Institutional Momentum?

BlackRock’s interest in Ethereum is becoming increasingly apparent. On May 19, it was reported that the company acquired $8.65 million worth of ETH through Coinbase. Prior to that, the SEC Crypto Task Force held a meeting with BlackRock, where staking and tokenization in the context of crypto ETFs were discussed. While the SEC still views staking as a possible indicator of an investment contract–potentially qualifying ETH as a security–the mere fact that such discussions are happening signals a willingness from the regulator to engage constructively. This is particularly important in light of the SEC’s new leadership in 2025, which has shown a more crypto-friendly stance.

BlackRock, the world’s largest asset manager, is actively pushing to include staking in its Ethereum ETF structure. In May, the firm submitted an updated filing to the SEC proposing to allow in-kind operations, where investors could receive ETF shares in the form of actual ETH. Moreover, the possibility of integrating staking directly into the fund was discussed–an addition BlackRock argues would make the product more complete. The company’s Head of Digital Assets, Robert Mitchnick, stated earlier this year that an Ethereum ETF without staking is “less optimal.”

Ethereum ETF history began in November 2023, when BlackRock filed its application to launch a spot Ethereum ETF. To avoid potential regulatory clashes, the company removed references to staking in May 2024. By July, the SEC approved the first spot Ethereum ETFs, with trading commencing on July 23. However, the launch was met with a lukewarm response: the funds experienced outflows and ETH dropped from $3,500 to $2,200. This signaled that without staking yields, ETH is less appealing to institutions.

By February 2025, 21Shares submitted its own application to include staking within its ETF structure, and the SEC accepted it for review, marking the first concrete sign that the regulator may be softening its stance on staking.

However, integrating staking into an Ethereum ETF is no easy task. As BlackRock’s digital asset chief noted, it’s not just about a green light from regulators or political shifts. A host of technical and legal challenges must be addressed.

Still, if these hurdles can be cleared, staking could become a transformative addition, making Ethereum ETFs a more complete and attractive tool. Staking yields are a key part of ETH’s investment appeal. Embedding them within ETFs could significantly increase institutional interest and reposition ETH as a yield-generating asset within traditional portfolios.

Staking in ETFs could potentially provide annual returns around 3.2%. For investors seeking passive income and stability, this makes the ETF far more compelling than simply holding ETH. Moreover, staking involves locking tokens, which reduces circulating supply and can support price appreciation.

Discussions around staking in ETFs show that the industry and regulators are inching toward compromise. Eventually, it’s likely that staking will be approved. This would mark a pivotal step in Ethereum’s institutional adoption, providing investors with a regulated vehicle that also offers protocol-level yield. Such a move could attract major capital inflows and elevate ETH’s role in diversified portfolios–placing it not only among top crypto assets, but in direct competition with traditional market tools like bonds and mutual funds. Staking in ETFs isn’t just a product upgrade–it’s a foundational step forward for the entire crypto industry.

BlackRock and Tokenization: The Next Piece in Ethereum’s Institutional Puzzle

Another critical piece in Ethereum’s institutionalization is asset tokenization. It was a main topic of BlackRock CEO Larry Fink’s annual letter, which outlines the financial sector’s future strategy.

In his letter, Fink refers to tokenization as a democratizing force for investment and claims it will fundamentally reshape global markets. He compares the traditional financial system to snail mail, while likening tokenization to email: “If SWIFT is the postal service, tokenization is email.”

Essentially, Fink argues that digital tokens capture the best features of traditional markets while eliminating middlemen and shifting settlement times from T+2 to T-0. Deals close in seconds instead of days. Tokenization is cheaper, faster, more efficient, and infinitely scalable.

Fink places special emphasis on non-tradable assets like real estate, infrastructure projects, and private equity-assets currently out of reach for most retail investors. Tokenization changes that: with smart contracts, ownership of fractional shares can be instantly and transparently transferred, with no intermediaries. Blockchain takes care of accounting, settlement, and trust at the protocol level.

According to BlackRock's estimates, the world will need $68 trillion by 2040 to build data centers, power lines, ports, and roads. Governments and banks alone cannot meet this demand. The solution lies in tokenizing infrastructure and allowing private capital to participate without intermediary barriers. The technological foundation for this step already exists.

Fink also acknowledges that the primary obstacle to tokenization is the lack of reliable digital identity. Without the ability to quickly and affordably verify KYC data for billions of people, the mass issuance of real-world tokens is impossible. As a working example, he cites India, where the government provides a digital KYC system accessible to a large segment of the population.

Another key point in the letter is a shift in investment models. According to Fink, the traditional 60/40 portfolio structure is becoming outdated. It’s being replaced by the 50/30/20 model – where 20% is allocated to illiquid assets such as infrastructure and private credit. To make this 20% accessible to the masses, tokens are essential; otherwise, it’s impossible to fractionalize large projects and ensure liquidity.

Fink’s letter makes it clear: BlackRock is preparing products where ownership of infrastructure and private assets will be represented as tokens – opening this segment to mass capital. Tokenization isn’t just a buzzword, it’s the next phase in the evolution of capital markets.

BlackRock is already moving in this direction

Today, BlackRock is the world’s largest asset manager, with a portfolio exceeding $11.6 trillion. Fink’s letter is not just speculation about the future – it reflects the concrete steps the company is already taking. BlackRock is steadily building the infrastructure for a tokenized financial system.

The company has invested in Circle, the issuer of USDC stablecoin, which may become a foundational settlement layer for future tokenized products. BlackRock has launched spot ETFs for both Bitcoin and Ethereum, effectively bridging traditional investors and crypto assets.

In 2024, the firm acquired Preqin – one of the largest data providers in private equity, private credit, infrastructure, and venture capital. According to BlackRock, this acquisition will enhance its analytics platforms and give clients full insight into private markets, the fastest-growing investment segment.

BlackRock also acquired HPS Investment Partners, a major player in the private credit space. This opens the door for future packaging of loans into on-chain bonds and tokenized debt instruments. Another key deal was the acquisition of Global Infrastructure Partners (GIP), a manager of real assets including airports, pipelines, and other strategic infrastructure. In October 2024, Fink stated:

“Infrastructure represents a generational investment opportunity. Through the combination of BlackRock and GIP, we are well positioned to capitalize on the long-term structural trends that will continue to drive the growth of infrastructure and deliver superior investment opportunities for clients globally.”

In his 2025 letter, Fink articulated the broader vision, saying thattokenization can transform infrastructure and private assets by making them more accessible and more liquid.

All the key components – data, settlement layers, real assets, and legal structures – can eventually be unified into a tokenized form of ownership and trading, unlocking a new asset class for millions of investors.

What does this mean for Ethereum?

While Fink doesn’t explicitly mention Ethereum or Bitcoin, the implications are clear: tokenization will make investing more accessible, liquid, and affordable – especially in private markets. When the world’s largest asset manager talks about tokenization as the future of markets, it’s not just a concept – it’s a signal. The real question is no longer “if” but “when” all the pieces come together into a single system.

Crypto is not an alternative to markets – it is the future of markets. BlackRock’s involvement accelerates the transition from niche to mainstream. The next steps include tokenized ETFs, company shares on L2s, and passive DeFi income with integrated KYC. Web3 is no longer an alternative, it’s becoming the new standard. Blockchain, digital assets, transparency, security, and accessibility – all of this is already live on Ethereum.

Ethereum is not just a blockchain. It’s a truly decentralized, resilient, and regulation-ready infrastructure suited for financial products worth trillions of dollars. The network has several unique strengths:

• Fully decentralized – launched as proof-of-work, developed without venture capital, and community-funded.

• Enterprise-grade reliability – 100% uptime over 10 years and 16 successful upgrades.

• L2 scaling solutions that can meet institutional demand while supporting KYC, without compromising decentralization or security.

• The largest number of full-time developers, protocols, and implemented standards.

• DeFi on Ethereum remains the industry leader – with over $85 billion in TVL, accounting for 57% of the entire DeFi market, far ahead of any other chain.

Ethereum is no longer just the second-largest cryptocurrency. It’s the backbone of a new financial layer, where tokens are not just assets – they are gateways into a global investment infrastructure.

Conclusion

As Ethereum enters its second decade, it’s evolving from a smart contract platform into the core infrastructure of the future financial system. Institutional products like staking-enabled ETFs, tokenized infrastructure, and DeFi integration into traditional markets are all parts of a growing puzzle.

Ethereum is becoming the technological base for products valued in the trillions. This is not an alternative to capital markets – it’s their next phase.

The steps taken today by BlackRock and other financial giants show that blockchain infrastructure is no longer experimental – it’s becoming the default foundation of the new digital economy.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.