BlackRock's investment of $113.6 million in the US spot Ethereum ETF has once again refreshed the market's perception of institutional capital entering the space. The leading players on Wall Street are beginning to intensively position themselves in crypto assets, and the underlying logic warrants in-depth reflection.

Why a spot ETF? Why at this particular time?

First, the shift in regulatory expectations has played a crucial role. Institutions like BlackRock typically do not follow the crowd blindly; their large-scale investments are essentially a bet that U.S. regulators will ultimately approve spot ETF products. Once this expectation is validated, more pension funds and hedge funds will follow suit, and the subsequent flood of capital will no longer be just a trickle.

Second, the fundamentals of Ethereum itself are changing. Whether it's the ongoing evolution of the DeFi ecosystem or the maturing Layer 2 scaling solutions, these developments are creating conditions for ETH's revaluation. Institutional investors excel at capturing such "bargain" opportunities—low valuation combined with growth potential—making this combination irresistible to them.

Furthermore, once the "ice-breaking" effect is established, it becomes difficult to reverse. When giants like BlackRock lead the way, it sends a strong risk signal—that institutions believe participation is now sufficiently safe. This has a significant psychological impact on other traditional investors and can trigger a chain reaction of new entries.

However, several risks need to be noted:

The Federal Reserve's policy direction remains the core variable for the market. If expectations of rate hikes reverse, capital may quickly flow back into traditional assets, and the attractiveness of the Ethereum ETF will diminish accordingly. Such reversals have happened more than once in history.

The SEC's approval process is never straightforward. Although a spot Bitcoin ETF has already been approved, an Ethereum ETF still faces more uncertainties. Regulators may continue to adopt a "delay tactic" or impose more stringent conditions, which could delay market expectations from materializing.

Institutional entry often attracts a large number of retail investors following suit. When sentiment is ignited and chasing gains becomes mainstream, it often turns into a story of chasing high and "taking over" the position. Short-term capital games and long-term value investment logic intertwine here.

BlackRock's recent move indeed demonstrates a shift in institutional attitudes toward crypto assets. However, institutional money always calculates more carefully than retail investors. Their choice of a "safe" spot ETF is fundamentally about creating a risk-controlled participation method for themselves and their clients. Once this path is established, it could lay the groundwork for the next upward cycle in Ethereum's price. The key still depends on the SEC's stance—that is the decisive piece of the puzzle.