Ethereum Surges 0.09% as SEC Delays Staking Decision, BlackRock Buys 3 Million ETH

Ethereum's latest price was $3796.70, up 0.099% in the last 24 hours. The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the addition of staking features to the Invesco Galaxy Spot Ethereum ETF. The SEC extended the review period for the application submitted by Cboe BZX Exchange, which was filed on June 9. The Cboe BZX Exchange proposed a rule change to grant staking authorization to its Ethereum ETF product. Amendment No. 1, submitted on June 23, was revised and filed with the Federal Register on June 27. The SEC has extended the deadline and set a final decision date of September 25, 2025. The Commission stated that new financial practices such as staking are important in terms of investor safety, market stability and the regulatory framework, and that additional time is needed.

BlackRock has rapidly acquired over 3 million Ethereum in its iShares Ethereum Trust, seeking approval for staking, potentially reshaping institutional engagement with the Ethereum network. The move could transform Ethereum into institutional-grade collateral, impacting market dynamics and regulatory postures, with implications for blockchain participation. Through the iShares Ethereum Trust (ETHA), BlackRock looks to become a leading force in ETF staking. The US SEC's acknowledgment of the proposal may pave the way for institutional funds to earn staking rewards for the first time. The unprecedented accumulation of digital assets by BlackRock has stirred significant interest. This move toward embracing staking within ETFs is expected to enhance institutional involvement, further driving ETH prices and impacting circulation. If approved, this development could introduce significant financial shifts. Institutional ETH's lock-in for staking might tighten the overall supply, effectively impacting staking yields and Ethereum's market valuation. The SEC's regulatory stance has softened regarding ETF staking. This change may bolster the traditional finance sector's role in blockchain security, highlighting the shift from a passive holding strategy to an actively engaging approach. Potential outcomes of this trend include increased Ethereum network security and reduced circulation liquidity. Historical precedents from Bitcoin do not reflect the added staking dimension, marking unique territory for Ethereum as events unfold. This event marks a transformative step for ETH as yield-generating, institutional-grade collateral and signals the first large-scale experiment where traditional finance not only invests in, but actively powers, public blockchain infrastructure via protocol staking.

Ethereum’s 10th anniversary is proving to be more than symbolic. As the network celebrates a decade since mining its genesis block on July 30, data shows a record-breaking surge in institutional demand. Spot Ethereum ETFs recorded $5.41 billion in net inflows in July alone, surpassing the combined capital entries of the previous 11 months, which stood at $4.21 billion as of June 2025. Data from SoSoValue shows that ETH ETFs have had $9.62 billion in cumulative fund deposits since their launch in July 2024. However, the inflows haven’t been consistent. After a rocky start, with $483 million in outflows in their first month, the ETFs saw steady growth. They hit 10 figures for the first time in November 2024, when $1.05 billion came into the funds, followed by an even more impressive $2.08 billion the following month. The first quarter of 2025 was more muted. January and February saw a combined $161.23 million in new capital before a poor showing in March led to more than $403 million flowing out of the ETFs. Since then, the products have been on a tear, with investment activity growing exponentially month after month, to finally hit $5.41 billion in July. The explosion suggests a shift from institutional caution to aggressive accumulation, with ETH emerging as the clear beneficiary of this sentiment shift. Data from SoSoValue shows that BlackRock’s ETHA alone now holds $11.39 billion in assets, while Grayscale’s ETHE remains in recovery after $4.31 billion in cumulative withdrawals. Together, these movements have pushed Ethereum ETF assets to $21.61 billion, which is about 4.75% of ETH’s market cap. QCP Capital has cautioned that derivatives positioning and overheated funding rates may create near-term resistance around $4,000, yet the structural tailwinds from ETF demand remain intact. If these fund flows persist, Ethereum could not only challenge its November 2021 all-time high of $4,878 but also cement itself as the centerpiece of a potential altcoin-led market cycle.

Ethereum recently marked its tenth anniversary, commemorating a decade since the mining of its genesis block. The occasion has sparked widespread reflection on the network's journey, its transformative upgrades, and its path towards widespread adoption, with leading figures within the ecosystem actively discussing future evolution. Concurrent with this milestone, institutional demand for Ethereum has surged dramatically. Spot Ethereum Exchange-Traded Funds (ETFs) recorded unprecedented inflows in July 2025 alone, accumulating $5.41 billion. This substantial figure notably surpassed the combined net inflows of $4.21 billion documented over the preceding eleven months. Since their initial launch in July 2024, these Ethereum ETFs have gathered cumulative net inflows of $9.62 billion, though with varying monthly activity following a difficult initial start that saw outflows. This dramatic influx, particularly the record July figure, indicates a significant shift in institutional sentiment, moving from earlier caution towards aggressive accumulation of Ethereum exposure. Specific funds, like BlackRock's ETHA, have seen substantial asset growth. The collective movement of capital into these ETFs signifies Ethereum's increasing prominence within institutional portfolios.

Beyond market activity, the regulatory landscape for digital assets may see important developments. Discussions are underway for updated guidance from tax authorities on critical areas impacting Ethereum users and developers, including the tax treatment of staking rewards, wrapping mechanisms, and wash sale rules applicable to digital assets. There is also a significant push within legislative circles to establish digital assets as a distinct, new asset class, providing enhanced regulatory clarity. Analysts have noted that while technical factors in derivatives markets could present near-term resistance points, the underlying structural drivers fueled by sustained ETF demand provide strong fundamental support. This institutional accumulation phase, coupled with the network's ongoing development and maturation after a decade, positions Ethereum advantageously for its next phase of growth and potential as a foundational technology.