BlackRock to launch Staked Ethereum ETF as fourth crypto product
|- BlackRock has filed a registration statement with the SEC to launch a Staked Ethereum ETF.
- The Trust is looking to stake about 70% to 90% of its holdings.
- BlackRock plans to allocate its validation rights to third-party staking providers.
Asset manager BlackRock wants to launch a Staked Ethereum (ETH) ETF, according to a registration statement filed with the Securities and Exchange Commission (SEC) on Friday.
The move comes after it registered the product's name in Delaware last month, a typical step that often precedes an SEC filing.
BlackRock plans to use third-party staking providers
The iShares Staked Ethereum Trust ETF, with the ticker ETHB, plans to launch on Nasdaq, providing investors with exposure to ETH's price and staking yields. BlackRock is looking to stake about 70% to 90% of the Trust's holdings "under normal market circumstances."
The filing notes that the Trust will not manage its own staking program but will, through its custodian, allocate its validation rights to staking providers.
"The Sponsor's choice of third-party Staking Services Providers, and its decision to allocate ether amongst chosen Staking Services Providers, will be based on a range of factors, including but not limited to the performance, reliability, and reputation of the Staking Services Provider, including monitoring their uptime and slashing history," the filing states.
If approved by the SEC, ETHB will mark BlackRock's fourth crypto ETF and second Ethereum product. Its existing spot ETH ETF (ETHA) holds the largest amount of ETH with net assets of about $11.08 billion as of December 5, per SoSoValue data.
In July, Nasdaq filed an updated 19b-4 with the SEC to include staking in ETHA. However, with the latest Staked ETH ETF filing, Bloomberg analyst Eric Balchunas noted that BlackRock is looking to offer investors a choice. "Staking yield isn't desirable by some," wrote Balchunas in a Monday post on social media platform X.
Staking involves committing one's cryptocurrencies to help facilitate the consensus process for a blockchain network in exchange for rewards in extra or new tokens. The process is subject to the risk of withdrawal delays and slashing.
Over the past few months, issuers have launched several new crypto ETFs, including products for Solana (SOL), XRP, and Dogecoin (DOGE). The increased launch follows positive crypto regulatory developments under President Trump's administration.
ETH trades around $3,110, down 0.7% at the time of publication on Monday.
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