BlackRock, the world’s largest asset manager, has officially submitted an application for the launch of a staked Ethereum exchange-traded fund (ETF).
The filing comes as the Ethereum price hovers above $3,100 and looks to bounce amid an overall crypto market uptick.
The asset manager also adds to its suite of ETF filings and joins the race to bring staked ETH ETFs to the market.
BlackRock files for staked ETH ETF
The crypto market has had a rough time in recent weeks, with negative action pushing prices to new lows below $3k.
But despite the negative sentiment that has intensified under macroeconomic uncertainties, a major buzz has continued to swirl around the ecosystem.
BlackRock’s filing of an S-1 registration statement with the United States Securities and Exchange Commission (SEC) has sparked further enthusiasm.
This is because it aligns with the hype around crypto spot ETFs, and staked ETH products have attracted huge speculative interest.
The asset manager submitted the application for the iShares Ethereum Staking Trust on Friday.
Other than this product and the spot ETH fund, BlackRock also boasts a spot Bitcoin ETF (IBIT) and a BTC income ETF. Bloomberg’s Eric Balchunas highlighted this on X on Monday.
The official prospectus filing for ishares Staked Ethereum ETF, their fourth crypto filing. Spot btc, eth, btc income and now this.
Approval process
Per the document, the new ETF will trade under the ticker ETHB – differentiating it from the available spot Ethereum ETF (ETHA).
The S-1 for ETHB comes a few weeks after BlackRock hinted at its filing with a registration in Delaware.
Following the filing, the process towards approval is live.
BlackRock’s iShares Ethereum Trust launched on exchanges in July 2024, one among several spot funds tracking the top altcoin to receive a nod from the SEC.
However, the products went live without the staking option, as the SEC was under the direction of the previous leadership.
Former SEC chair Gary Gensler’s exit earlier in the year has seen a marked shift in regulatory approach, including the approval of staked crypto ETFs. It includes funds around Dogecoin (DOGE).
BlackRock joins the likes of VanEck in this quest, with the SEC having given a nod to staked Solana (SOL) funds. Many issuers who listed ETH ETFs last year are either filing amended forms or submitting fresh applications.
ETHB, which will be accessible separately from ETHA, will allow investors to get exposure to the leading altcoin’s yield-generating mechanism.
The ETF does not require the investor to actively stake Ether.
“The Trust’s staking program seeks to maximize the portion of the Trust’s ether available for staking while controlling for liquidity and redemption risks. To manage the liquidity and redemption risks associated with staking, the Sponsor intends to maintain a reserve of unstaked ether,” reads part of the prospectus.
BlackRock says the reserve will be available for any anticipated redemptions.
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