Ethereum Surges 1.53% as BlackRock Buys $54M, Institutional Interest Grows

Ethereum's latest price was $1818.36, up 1.539% in the last 24 hours. Alex Gluchowski, the founder of ZKsync and CEO of Matter Labs, has emphasized the enduring significance of Ethereum in the decentralized economy. He believes that Ethereum remains the "world computer" with a strong product-market fit, serving as the foundational layer for the Internet of Value. Gluchowski highlights that while decentralized versions of platforms like Nasdaq and SWIFT may emerge, Ethereum's credible neutrality and secure base layer will continue to attract value, either directly or indirectly.

Gluchowski also noted that future global transaction and payment infrastructures will not rely on a single blockchain, much like the internet today does not depend on a single server. Instead, Ethereum is poised to serve as a foundational settlement layer for a vast network of decentralized blockchains. He urged Layer-2 developers to focus on Ethereum's forward trajectory rather than its past, emphasizing the need for future-ready Layer-2 designs that align with Ethereum's evolving architecture, especially in light of new proposals from Ethereum's leadership.

Following Gluchowski's remarks, Ethereum co-founder Vitalik Buterin proposed a major upgrade to the Ethereum Virtual Machine (EVM) by replacing it with RISC-V, an open-source computing architecture known for its built-in encryption and technical flexibility. The EVM currently supports Ethereum's smart contract ecosystem and has been crucial to its success. Several Layer-2 networks and independent blockchains use EVM standards to maintain compatibility with Ethereum applications. Buterin suggested that adopting RISC-V could improve the efficiency of Ethereum's execution layer and help resolve long-standing scalability challenges, while also simplifying the design of the execution layer for future upgrades.

ZKsync, a Layer-2 project, has been preparing for Ethereum's proposed architectural changes. Gluchowski indicated that ZKsync would soon announce developments aligned with Ethereum's vision, hinting that updates could arrive within the next two weeks. This signals an active push toward readiness for Ethereum's next phase of growth.

BlackRock, the world's largest asset manager, made a significant move by purchasing $54 million worth of Ethereum. This transaction underscores the growing institutional interest in Ethereum and serves as a major endorsement from a leading financial institution. The acquisition coincides with a surge in spot Ethereum ETF inflows, which analysts view as an optimistic sign amid changing United States regulatory reforms. The inflows into Ethereum-related ETFs recorded $104 million, marking a strong bullish sentiment and reflecting the changing regulatory landscape.

Ethereum's trading activity and market metrics have shown strength, with a daily market growth and substantial increases in trading volume. This surge in activity often indicates a spike in volatility, which is a warning for both bulls and bears. The short-term outlook for Ethereum depends on its ability to hold above critical support levels, with potential tests toward higher resistance zones if the support holds.

BlackRock's strategic timing of its Ethereum purchase aligns with political shifts that have improved sentiment among institutional investors. The appointment of Paul Atkins, a crypto-friendly figure, as SEC Chair has significantly improved the regulatory environment for digital assets. Atkins plans to develop "reasonable and targeted" regulatory guidelines, creating high expectations for the SEC's approval of spot ETFs and their staking features. This political shift toward crypto-friendly regulations is expected to further boost institutional demand for Ethereum.

Over the past day, Ethereum experienced a massive surge in demand for exchange-traded funds (ETFs), with Ethereum Spot ETFs recording a net inflow of $104 million within 24 hours. This surge reflects a growing demand for the asset as the crypto market recovers from recent slumps. Institutional investors are returning to the market, as evidenced by Ethereum's Coinbase Premium Index turning positive, reaching a monthly high. A rising premium typically signals renewed institutional accumulation and favorable sentiment toward Ethereum, which often translates into higher price trajectories.