BlackRock files for Ethereum staking ETF, new progress in institutional investment

Source: TokocryptoBlog Original Title: BlackRock Shocks the Crypto Market, Files Ethereum Staking ETF with the SEC! Original Link:

Background

The global asset management giant BlackRock has officially submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch a staking-based Ethereum Exchange-Traded Fund (ETF).

This move follows the tremendous success of BlackRock’s Bitcoin ETF launched in 2024. The product performed exceptionally well, with annual returns surpassing the total revenue of all of BlackRock’s traditional ETF products that have been operating for over 20 years. This success sends a positive signal for Ethereum and is expected to attract more institutional and traditional investors into the world’s second-largest crypto asset ecosystem.

What is Ethereum Staking?

Staking is a mechanism where crypto asset owners “lock” their tokens to help validate transactions on the network. In return, investors receive staking rewards in the form of the same assets, similar to dividends on stocks. For Ethereum, staking yields typically range between 3-4% annually.

Since 2022, Ethereum has transitioned from a proof-of-work (PoW) mechanism to a proof-of-stake (PoS) mechanism. This shift eliminated mining processes and made staking a core component of transaction validation on the Ethereum network.

Ethereum Staking ETF: A New Choice for Investors

Previously, BlackRock already had an Ethereum ETF, but the product was unable to offer staking features at launch due to lack of regulatory approval. BlackRock chose to submit a new ETF specifically for Ethereum staking, rather than modifying the existing product.

If approved, investors will face two options: an Ethereum ETF that only tracks price fluctuations, or an Ethereum ETF that also generates staking rewards. Given the high investor interest in yield products, staking ETFs are expected to become the preferred choice.

Before BlackRock, Grayscale was the first asset management company to launch an Ethereum staking ETF in October 2025. The launch of Grayscale’s product paved the way for other major players, including BlackRock, to enter the market.

Difference Between ETFs and Direct Cryptocurrency Holdings

While ETFs offer convenience for traditional investors, there are fundamental differences compared to direct crypto asset holdings (self-custody). In an ETF, the crypto assets are held and managed by the issuer, so investors do not have full control over the assets.

As a result, buying and selling can only occur during market trading hours and involve paying annual management fees. In contrast, direct holdings through crypto wallets allow users to transfer, exchange, or sell assets at any time, with costs limited to network transaction fees.

Therefore, some investors still choose to self-custody their crypto assets, including utilizing staking opportunities outside of ETFs.

Market Impact

BlackRock’s submission of an Ethereum staking ETF is seen as a strong signal of increasing adoption of cryptocurrencies by global financial institutions. If approved by the SEC, this product is expected to expand access for traditional investors to Ethereum and reinforce the position of crypto assets as a yield-generating investment tool in the global financial market.