Blackrock has just taken another step towards ETFs with Ethereum staking. On November 19, the asset management giant registered a fund in Delaware called Ishares Staked Ethereum Trust – the first formal structure for a product that is intended not only to hold ETH, but also to actively stake it and collect rewards from the network. This could be a turning point for the Ethereum market!
Staking as a game for higher returns
While the current Blackrock ETF spot (ETHAwhich launched in July 2024) only allows for price exposure to ETH, while staked ETFs are in a different league. Staking on the Ethereum network usually generates 3-5% per yearwhich transforms a classic fund into a premium product combining price growth with passive yield straight from the blockchain. For institutions looking not only for capital diversification, but also for regular income, this is a tempting proposition.
Industry analysts have already caught wind of the next move: fund registration usually precedes an application S-1 (prospectus pursuant to the Securities Act of 1933). In previous cycles, Blackrock has filed paperwork for spot Bitcoin and Ethereum ETFs within days to weeks of fund creation. So you can expect specifics soon.
It is worth adding that there are also rumors on the Internet (mainly on the X portal) that this is not about a new fund, but about adding a staking option to the ETH ETF ETHA from BlackRock. However, it quickly turned out that this was about a new fund and not adding an option to ETHA.
The staking race is heating up
Blackrock is not alone. Grayscale got the green light in October to add staking to its Ethereum funds. REX-Osprey launched the first staked ETH ETF in September under a slightly different regulatory structure. Fidelity, Franklin Templeton, 21shares – all are waiting to consider applications to include staking in their funds. Blackrock itself has already signaled its intentions. In July, Nasdaq filed Proposal 19b-4 to allow staking directly on ETHA – a proposal still awaiting a decision from the SEC. Robert Mitchnick, head of Blackrock’s digital assets division, called the approval of staking the “next phase” for Ethereum-based ETFs.
For now, there is no ticker, prospectus or official stock exchange listing proposal. Everything will kick in when the S-1 hits the SEC’s desk. But one thing is certain: the institutional cryptocurrency market is getting an update that will push Wall Street even deeper into decentralized digital assets.
