BlackRock signals it is working on a new staked Ethereum trust ETF

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.

It would also 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 add staking to 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, they proposed a rule change with the SEC to incorporate staking into ETHA, along with other issuers.

The US Securities and Exchange Commission under the Trump administration has been more open to new crypto exchange-traded products, and recently introduced a generic listing standard enabling faster approvals, as each application no longer needs to be assessed on a case-by-case basis.

Bloomberg ETF analyst Eric Balchunas noted that BlackRock’s staked ETH ETF product is registered under the Securities Act of 1933, which requires strong transparency and investor protection measures, as well as full disclosure before shares can be publicly sold.

There are currently around 70 crypto products awaiting regulatory approval, which were held up by the US government shutdown across October and November.

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BlackRock’s filing comes as REX-Osprey and Grayscale launched staked ETH ETF products in September and October.

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, thereby transforming the fund into a total-return product. 

It could therefore broaden the product’s appeal to yield-focused investors who may have avoided Ethereum ETF products due to their lack of income.

The average annual return on ETH staking is approximately 3.95%, according to Blocknative data.

BlackRock not taking part in altcoin ETF wave

While other issuers have filed for a multitude of altcoin-focused ETFs in recent months, BlackRock appears to be abstaining, having only recently filed a Bitcoin Premium Income ETF in September as a sequel to its iShares Bitcoin Trust ETF.

The Bitcoin Premium Income ETF also aims to generate yield by selling covered call options and collecting premiums.

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