BlackRock told regulators the fund will track Ethereum's price while capturing staking rewards, subject to the sponsor's assessment of legal and tax risks.
Ethereum News
The world's largest asset manager filed paperwork Friday seeking SEC approval for an Ethereum fund that includes staking yields. The iShares Ethereum Staking Trust represents BlackRock's second Ethereum product after launching a spot fund last year.
The registration statement follows a Delaware name filing completed several weeks ago. BlackRock told regulators the fund will track Ethereum's price while capturing staking rewards, subject to the sponsor's assessment of legal and tax risks.
Former SEC Chair Gary Gensler previously instructed firms to remove staking features from crypto ETF applications, arguing that such services could constitute unregistered securities offerings. Current Chair Paul Atkins appears to have softened that stance, with multiple issuers now submitting or amending filings to include staking.
BlackRock opted to create a separate fund rather than modify its existing product. The iShares Ethereum Trust ETF trading under ticker ETHA holds approximately $11 billion in assets, making it the largest spot Ethereum fund available to U.S. investors.
The filing comes as other issuers have already implemented staking features. Grayscale added staking to its Ethereum fund while Fidelity built the capability into its Solana ETF launched earlier this year.
Staking provides network validators with token rewards for securing the blockchain, typically generating annual yields between 3% and 5% depending on participation rates and network conditions. The feature allows fund investors to earn additional returns beyond price appreciation.
Crypto ETF launches have expanded in recent months, benefiting from a more favorable regulatory environment. Firms introduced products tracking DOGE and XRP alongside various other digital assets as Washington's approach to cryptocurrency oversight evolved under new leadership.
The registration does not include a target launch date. SEC review processes for ETF applications typically span several months as regulators evaluate fund structures, custody arrangements, and investor protection mechanisms before granting approval.
To formally trigger the SEC's approval timeline, the fund's listing exchange must submit a separate 19b-4 form. BlackRock's S-1 registration statement begins the review process but does not yet create a deadline for regulators to approve or deny the application.
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