BlackRock Registers iShares Staked Ethereum ETF in Delaware

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ago 2 hours

BlackRock Registers iShares Staked Ethereum ETF in Delaware

BlackRock has made significant strides in the cryptocurrency market with the registration of its iShares Staked Ethereum ETF in Delaware. This step indicates the asset manager’s intent to expand its offerings in this innovative financial product.

Details of the iShares Staked Ethereum ETF

The filing for the iShares Staked Ethereum Trust ETF was managed by Daniel Schweiger, a BlackRock managing director. This registration follows his earlier submission for BlackRock’s first iShares Ethereum fund in late 2023. Such name registrations typically serve as initial indicators of upcoming exchange-traded funds (ETFs).

Industry Reaction

According to Eric Balchunas, a senior ETF analyst at Bloomberg, the formal application for the new iShares Ethereum staking fund is expected to be filed soon. This news aligns with a recent update from Nasdaq, which filed a 19b-4 to incorporate staking capabilities into BlackRock’s existing iShares Ethereum Trust (ETHA) back in July.

Competitive Landscape

Other prominent crypto asset managers, including 21 Shares and Grayscale, have also sought updates to their Ethereum-related funds.
As of mid-November 2023, the iShares Ethereum Trust (ETHA) remains the largest Ethereum ETF, boasting nearly $11.5 billion in assets under management.
Nevertheless, this fund has experienced $165 million in outflows due to widespread market downturns.

SEC Stance on Crypto ETFs

Historically, the U.S. Securities and Exchange Commission (SEC) has taken a cautious approach towards crypto-related ETFs. However, during the second Trump administration, the SEC became more open to permitting more products in this space. Despite this shift, few funds offering staking rewards have been approved.

Recently, in October, Grayscale received permission to enable staking for its U.S. Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF (ETH). This marked a significant milestone, making it the first registered spot-market funds under the Securities Act of 1933 to offer staking rewards.

Future Expectations

In July 2023, REX-Osprey introduced a staking Solana ETF using provisions of the Investment Company Act of 1940, and followed up in September with an Ethereum staking fund under the same framework. BlackRock’s Head of Digital Assets, Robert Mitchnick, has indicated optimism that the SEC will approve staking for ETH ETFs as the next evolution in this financial sector.

As developments unfold, the expansion of staked Ethereum investment products seems poised to reshape the landscape of cryptocurrency ETFs. BlackRock’s proactive efforts signal its commitment to staying at the forefront of these emerging opportunities.