Key Insights:
- Vitalik Buterin outlines four major technical changes that could reshape Ethereum’s core infrastructure.
- BlackRock advances plans for ETHB, a staking ETF designed to generate yield for institutional investors.
- ETH trades near $2,000 as institutional demand and network upgrades shape long-term outlook.
Vitalik Buterin has outlined four possible jet-engine changes on Ethereum. It signals another major shift for the network, even as institutions prepare for deeper exposure through new staking products.
His remarks come as asset managers push forward with Ethereum-based ETFs and as ETH trades below $2,000 amid mixed market sentiment.
Vitalik Buterin Shares New Plans for Ethereum
The four potential jet-engine changes on Ethereum were revealed during an exchange about the network’s long-term direction. Vitalik Buterin said the goal is not to abandon the current system but to build something stronger on top of it.
He described plans to create what he called a more principled, simpler Ethereum as a bolt-on to the current chain. The idea is to keep it tightly integrated and interoperable, then expand it over time.
At the same time, he said the base layer must retain system-wide properties, such as censorship resistance, zero-knowledge prover friendliness, and strong consensus design. Buterin pointed to Ethereum’s past overhaul, known as The Merge, as proof that deep structural change is possible without halting the network.
Buterin said Ethereum has already made major engine changes mid-flight once and could do it several more times. He listed four broad areas that may see upgrades: the state tree, Lean-style consensus improvements, stronger ZK-EVM verification, and a virtual machine change.
Each of these would reshape how Ethereum processes data and verifies transactions. The state tree affects how account balances and smart contract data are stored. Leaner consensus rules could reduce complexity at the base layer.
Buterin Signals Structural Upgrade to Counter L2 Pressure
ZK-EVM verification would strengthen cryptographic proof systems that help scale the chain. A change to a virtual machine would affect how smart contracts are executed.
Vitalik Buterin also floated a longer-term path. In five years, he said, Ethereum could have an open pathway to turn the existing system into smart contracts. This will be written in the new system’s language if that route is chosen. He added that faster coding and verification tools may shorten that timeline.
Notably, his comments arrive at a time when Ethereum faces pressure from layer-2 networks, app chains, and alternative clients. Rather than allowing fragmentation, he signaled a plan to pull improvements into a unified structure.
BlackRock Staking Ethereum ETF
While Vitalik Buterin is focusing on improving the network, institutional interest in Ethereum is expanding. BlackRock is preparing to launch its iShares Staked Ethereum Trust, expected to trade under the ticker ETHB.
The firm has already found success with its spot Ethereum ETF, iShares Ethereum Trust. It has gathered more than $6 billion in assets. A December filing showed that a seed capital investor purchased 4,000 shares at $0.25 to provide initial funding for the new product.
The proposed ETHB structure goes further than holding Ether. BlackRock plans to stake between 70% and 95% of the ETH held by the trust.
A liquidity sleeve of 5% to 30% in unstaked ETH would help manage redemptions. According to filings, 82% of staking rewards would be distributed to investors. The remaining 18% would be shared between BlackRock and its execution partner, Coinbase.
The sponsor fee is listed at 0.25%, in addition to the share of staking rewards. This structure would turn Ethereum exposure from a passive holding into a yield-bearing product. Vitalik Buterin said that he’s trying to do something more ambitious. So, this structure will align traditional finance with on-chain returns.
ETH Price Outlook
When writing, Ethereum was trading near $1,970, with a market capitalization of around $238 billion. Daily trading volume was above $18 billion, reflecting steady activity despite recent price weakness.
Some traders pointed to a divergence between price and total value locked on the network. Historically, when price has traded below network value metrics for an extended period, it has later moved closer to those levels.
At the same time, institutional flows and tokenized real-world assets continued to grow on Ethereum. With staking ETFs under review and structural upgrades under discussion, the network stands at a turning point.
The four potential jet-engine changes suggested by Vitalik Buterin could reshape its technical foundation. Coupled with rising institutional participation, they form the backdrop for Ethereum’s next phase.