Ethereum's 11th anniversary arrives with a record 33% of supply locked in staking and institutional capital rotating from Bitcoin.
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Ethereum hits record 40.2M staked ETH as BlackRock clients buy $20M
Ethereum staked supply hit a record 40.2 million ETH in the second quarter, equivalent to 33% of total supply and worth more than $63 billion, as the network marked its 11th anniversary on July 30.
"Ethereum has evolved from an ambitious vision of a programmable blockchain into the foundation of a thriving digital ecosystem," Raj Karkara, head of research at ZebPay, said. He added that the transition to proof-of-stake and scalability improvements have strengthened the network's long-term sustainability.
The staking milestone coincided with a notable shift in institutional flows. BlackRock clients net sold $60 million of the iShares Bitcoin Trust this week while purchasing more than $20 million of Ethereum exposure through the firm's related products, according to Arkham Intelligence data. A wallet identified as 0x2d59 withdrew 40,000 ETH, worth approximately $76.58 million, from Binance, Lookonchain data shows.
The record staking level reduces circulating supply and reflects holder conviction, while the institutional rotation from Bitcoin to Ethereum products suggests allocators may be seeking income through Ethereum's native staking yield — a feature unavailable to Bitcoin ETF holders. Whether the momentum persists beyond the anniversary celebrations will determine if the milestone translates into sustained price gains.
BlackRock's Bitcoin-to-Ethereum Rotation
The divergence in BlackRock client flows marks one of the clearest institutional rotation patterns since spot crypto ETFs launched. BlackRock's tracked portfolio holds roughly 736,000 BTC valued at about $47.5 billion and 2.9 million ETH worth approximately $5.57 billion, per Arkham's entity explorer. While Bitcoin remains the dominant holding by a wide margin, the short-term flow divergence has drawn attention across crypto markets.
On July 27 alone, BlackRock's iShares Ethereum Trust attracted about $11.75 million in net inflows, helping the broader U.S. spot Ethereum ETF complex post net gains that day. Over the five trading days ending July 24, BlackRock's ETH-related funds drew a combined net inflow near $99 million while IBIT experienced approximately $95.5 million in outflows, per SoSoValue data.
Staking Growth and Supply Dynamics
The record 40.2 million ETH staked represents a structural shift in Ethereum's supply dynamics. With roughly one-third of all ETH locked in the Beacon Chain deposit contract, available circulating supply has tightened even as new issuance from staking rewards remains modest. The staking yield provides a recurring income stream that institutional allocators can access through products like BlackRock's staking-enabled Ethereum trust, potentially explaining the rotation from Bitcoin.
Ethereum traded at $1,902.00 as of press time, according to CoinGecko data. The next key resistance level sits near $2,000, a psychological barrier that could attract selling pressure if approached without sufficient volume.
This article is for informational purposes only and does not constitute investment advice.
