BlackRock has officially taken its first step toward launching a Staked Ether ETF, registering the iShares Staked Ethereum Trust in Delaware in a move that signals growing competition among issuers seeking approval for yield-bearing Ethereum products.The filing, first highlighted by Bloomberg ETF analyst Eric Balchunas, indicates BlackRock’s intent to enter the staked ETH market at a time when issuers await formal guidance from the U.S. Securities and Exchange Commission (SEC) on whether staking can be included in U.S.-listed ETFs.What to knowBlackRock has registered the iShares Staked Ethereum Trust in Delaware.The filing is not yet a formal ETF application under the Securities Act of 1933.BlackRock’s move follows VanEck’s similar registration tied to Lido’s staked ETH.Issuers continue to wait for SEC clarity on including staking in spot ETH ETFs.Staked ETH ETFs could offer yield-bearing returns, with staking currently averaging 3.95% annually.BlackRock Registers iShares Staked Ethereum Trust in DelawareThe registration, filed on Nov. 19, does not constitute an official ETF proposal but is widely viewed as the first administrative step toward seeking SEC approval. The trust would enable BlackRock to launch a spot-based, yield-generating Staked Ether ETF, pending regulatory clarity.Balchunas noted that a filing under the Securities Act of 1933 positions the product for full asset backing, transparency requirements, and traditional ETF disclosure standards.“BlackRock is planning to file for a Staked Ethereum ETF, as per the Delaware name registration. ’33 Act. Filing coming soon,”— Eric Balchunas, BloombergWhy the Filing MattersStaking remains one of the largest unresolved regulatory questions in the U.S. crypto ETF market. While spot ETH ETFs launched in 2024, the SEC required issuers to remove staking features, arguing they could constitute unregistered securities offerings.With a more crypto-friendly SEC under the current administration and new generic ETF listing standards that accelerate approvals, issuers believe the window for staking-enabled products may finally be opening.VanEck, REX-Osprey, and Grayscale Already in the RaceBlackRock’s move follows VanEck’s registration of a staked ETH trust tied to Lido-staked ETH (stETH), as well as staked ETH ETF launches by REX-Osprey and Grayscale in recent months.Roughly 70 crypto-linked products are now awaiting SEC action after delays caused by the U.S. government shutdown earlier this fall.The competitive landscape suggests issuers expect strong demand for yield-enhanced Ethereum products.How a Staked Ether ETF Would WorkA Staked Ether ETF would deliver two return streams:ETH price appreciationStaking yield, currently averaging about 3.95% per year (Blocknative)This converts the product into a total-return ETF, broadening its appeal for:Yield-focused investorsIncome-driven fundsRegistered investment advisers (RIAs) seeking predictable returnsBy offering a built-in yield, a Staked ETH ETF could attract investors who avoided first-wave ETH ETFs due to their lack of income generation.BlackRock’s ETHA Strategy and Next StepsBlackRock already manages the iShares Ethereum Trust ETF (ETHA), which launched in July 2024 and has attracted $13.1 billion in inflows. ETHA currently does not support staking.On its website, BlackRock previously stated:“Staking involves operational complexities and regulatory issues that currently make it unfeasible.”However, in July the firm joined other issuers in submitting a proposed SEC rule change that would allow ETH staking in existing spot ETF products.The new staked ETH trust would effectively serve as a dedicated vehicle for a yield-bearing Ethereum ETF once regulators provide clarity.Market Outlook: A New Phase for Crypto ETFsBlackRock’s move suggests a growing consensus that staking will eventually be permitted in U.S.-listed ETFs. Analysts say a Staked Ether ETF could:Increase total returnsImprove demand for Ethereum productsBroaden ETF adoption among income-focused investorsMark the next evolution of digital-asset ETFs after Bitcoin and ETH spot approvalsWith competition rising and issuers positioning early, the Staked ETH category may become one of the most significant battlegrounds in the 2025 crypto ETF market.
Anais
Catherine
Weatherly
Kikyo