BlackRock has registered for a new staked Ethereum exchange-traded fund in Delaware, signalling that the $13.5 trillion asset manager is now ready to expand beyond its flagship Ethereum ETF product. A Delaware name registration is one of the first steps that a fund issuer needs to take to file for a new ETF. BlackRock, however, still needs to file other relevant documents to put the proposed product on track for regulatory approval.
This new product would complement BlackRock’s iShares Ethereum Trust ETF (ETHA), which has attracted $13.1 billion worth of inflows since launching in July 2024. BlackRock did not initially include staking in its spot Ethereum product, stating on its website:
No, the iShares Ethereum Trust ETF will not stake its ether at this time. Staking involves operational complexities and regulatory issues that currently make it unfeasible.
However, in July, the firm proposed a rule change with the Securities and Exchange Commission (SEC) to incorporate staking into ETHA, alongside other issuers.
The US Securities and Exchange Commission, under the current administration, has shown increased openness to new crypto exchange-traded products. The recent introduction of a generic listing standard has enabled faster approvals, as each application no longer requires a case-by-case assessment.
Bloomberg ETF analyst Eric Balchunas noted that BlackRock’s staked ETH ETF product is registered under the Securities Act of 1933. This legislation mandates strong transparency and investor protection measures, along with full disclosure before shares can be publicly sold.
Currently, approximately 70 crypto products are awaiting regulatory approval, a backlog that was exacerbated by the US government shutdown in October and November.
BlackRock’s filing comes at a time when REX-Osprey and Grayscale have already launched staked ETH ETF products in September and October, respectively.
Staked ETH ETFs Could Offer More Lucrative Returns
Incorporating staking into an Ethereum ETF could enhance returns by adding a steady yield component on top of price exposure. This would effectively transform the fund into a total-return product, potentially broadening its appeal to yield-focused investors who may have previously avoided Ethereum ETF products due to their lack of income generation.
The average annual return on ETH staking is approximately 3.95%, according to data from Blocknative.
BlackRock Appears Focused on Bitcoin and Ethereum ETFs
While other issuers have filed for a multitude of altcoin-focused ETFs in recent months, BlackRock appears to be concentrating its efforts on established cryptocurrencies. The firm recently filed for a Bitcoin Premium Income ETF in September, following its iShares Bitcoin Trust ETF.
The Bitcoin Premium Income ETF also aims to generate yield by selling covered call options and collecting premiums.