BlackRock Surprises the Crypto Market, Files Ethereum Staking ETF with the SEC!

Source: TokocryptoBlog Original Title: BlackRock Shocks the Crypto Market, Submits Ethereum Staking ETF to SEC! Original Link: The global asset management giant, BlackRock, is making waves again in the crypto industry. The company has officially filed an application with the Securities and Exchange Commission (SEC) of the United States to launch a staking-based Ethereum Exchange-Traded Fund (ETF).

This move follows the huge success of BlackRock’s Bitcoin ETF launched in 2024. The product recorded outstanding performance, even surpassing the annual revenue of all other traditional BlackRock ETFs that have been operating for over 20 years. This success now signals a positive outlook for Ethereum, as it has the potential to attract more institutional and conventional investors to the second-largest crypto ecosystem in the world.

What Is Ethereum Staking?

Staking is a mechanism where crypto asset owners “lock” their coins to help the network verify transactions. In return, investors receive staking rewards in the form of the same assets, similar to dividends on stocks. For Ethereum, staking yields typically range around 3-4 percent per year (APY).

Since 2022, Ethereum has transitioned from the Proof-of-Work (PoW) mechanism to Proof-of-Stake (PoS). This change eliminates mining processes and makes staking a core component in validating Ethereum network transactions.

Ethereum Staking ETF: A New Choice for Investors

Previously, BlackRock already had an Ethereum ETF, but the product did not include staking features because it had not received regulatory approval at launch. Instead of modifying the existing ETF, BlackRock chose to apply for a new ETF specifically for Ethereum staking.

If approved, investors will face two options: an Ethereum ETF that only tracks price movements, or an Ethereum ETF that also generates yields from staking. With high investor interest in yield-bearing products, staking ETFs are expected to become a preferred option.

Before BlackRock, Grayscale was recorded as the first asset manager to launch a staking Ethereum ETF in October 2025. The presence of Grayscale’s product is said to pave the way for other major players, including BlackRock.

ETF vs Direct Crypto Ownership

Although ETFs offer convenience for traditional investors, there are fundamental differences compared to direct crypto ownership (self-custody). In ETFs, crypto assets are stored and managed by the issuer, so investors do not have full control over the assets.

As a consequence, buy and sell transactions can only be made during market trading hours, and annual management fees are charged. Conversely, direct ownership through crypto wallets allows users to transfer, exchange, or sell assets at any time, with costs limited to network transaction fees.

For this reason, some investors still prefer self-custody wallets to manage their crypto assets independently, including to take advantage of staking opportunities outside of ETFs.

Market Impact

The filing of a staking Ethereum ETF by BlackRock is seen as a strong signal of increasing adoption of crypto by global financial institutions. If approved by the SEC, this product could expand access for traditional investors to Ethereum and strengthen the position of crypto assets as yield-generating investment instruments in the global financial markets.