BlackRock Builds on Ethereum as Spot ETFs Plummet

The Ethereum market has seen a significant decline in spot ETH ETFs, which peaked at $15 billion in mid-2025 but have since retreated to approximately $11 billion. Weekly outflows of $200-$300 million have been reported by Kaiko data citing Farside.

Equity treasury vehicles like ETHZilla Corp, which fell 97% from its August 2025 peak above $107, have suffered near-total collapses due to their asymmetric downside exposure. This is in contrast to prior crypto downturns, where such vehicles were more diversified and less prone to extreme losses.

In contrast, institutional infrastructure investment is accelerating, with BlackRock filing for an iShares Staked Ethereum Trust (ETHB) that would stake 70-95% of holdings via Coinbase and distribute approximately 3% annual yield to shareholders. Investors would receive 82% of staking rewards.