One of the largest players in the asset management market, US firm BlackRock, has filed an application with the US Securities and Exchange Commission (SEC) to register an ETF linked to staked Ethereum (ETH). It is another step by the financial giant toward integrating cryptocurrencies with traditional investment instruments, following the success of its flagship Bitcoin ETF.
Details of the filing
On Friday, BlackRock submitted an S-1 form to the SEC for the iShares Staked Ethereum Trust. The fund is to be listed on the Nasdaq under the ticker ETHB. Investors could thereby gain indirect exposure to staked ETH, meaning the assets will generate income from Ethereum network staking. The filing is part of the SEC’s standard procedure for new ETFs, but it does not guarantee automatic approval.
If the regulator gives the green light, ETHB could become one of the first ETFs in the world directly linked to staked cryptocurrencies. Ethereum staking involves locking ETH tokens in the network to support its security and transaction validation, in exchange for rewards in the form of additional ETH. It is a mechanism that makes ETH more attractive to institutional investors.
Market context
The SEC approved spot Ethereum-based ETFs in May 2024, opening the door to broader access to the second-largest cryptocurrency. However, funds offering staking remain rare. In October 2024, Grayscale Investments added staking functionality to its already approved spot ETH and mini ETH funds. Grayscale and Bitwise took similar steps, launching Solana (SOL) staking products in the same month.
In July this year, Canary Capital filed an analogous application for an ETF with staked Injective (INJ), showing growing interest in this segment. BlackRock, which manages the largest spot Bitcoin ETF (iShares Bitcoin Trust under the ticker IBIT), is no newcomer to cryptocurrencies. The firm, founded in 1988 by Larry Fink, previously criticised Bitcoin, calling it in 2017 an „asset of fear” and a tool for money laundering. However, in recent years Fink has changed his view, declaring a „big shift” in his approach to cryptocurrencies, although he still describes BTC as an „asset of fear”.
Potential market impact
Experts suggest that approving staking in spot Ethereum ETFs could „dramatically change the shape of the market”. Growing institutional demand for staked ETH could increase network liquidity, raise the token’s price and strengthen Ethereum’s position in the DeFi (decentralised finance) ecosystem. BlackRock, with assets under management exceeding trillions of dollars, has the potential to attract billions in new investments.
BlackRock’s filing is a signal that traditional finance is increasingly boldly entering the world of cryptocurrencies. Following the success of IBIT, which became the world’s largest BTC fund, ETHB could repeat that scenario for Ethereum. Investors will now be watching with anticipation for the SEC’s decision, which may come in the coming months.
Source: Official filing on Sec.gov
