BlackRock, the world’s largest asset manager, is looking to launch a new investment product for investing in ethereum. However, this one is slightly different.
It’s a so-called staked Ethereum ETF, a fund that not only tracks the value of ethereum but also generates extra yield from staking ETH to secure the network.
What BlackRock Plans to Do #
The new fund is named the iShares Ethereum Staking Trust (ETHB), according to the filing. Investors will be able to easily invest through their broker without needing to open a wallet or perform technical steps themselves. The fund handles the complex work and collects the staking rewards that investors would otherwise miss out on if they only bought ethereum.
BlackRock already has another fund, ETHA, which manages approximately €9.5 billion in ethereum. That fund only tracks the price of ethereum and does not involve staking. This is why a separate product is now being introduced, specifically focused on yield from staking.
Notable Timing for the Launch #
The U.S. Securities and Exchange Commission (SEC) has been strict on staking in recent years. Under the previous chairman, companies were even required to remove all staking elements from their applications, making a staked ETF like this impossible.
But under the new SEC chairman, Paul Atkins, the stance appears to be changing. Companies like BlackRock and VanEck are seizing this shift to file new products. BlackRock has even opted to create a completely new fund for this purpose.
What This Means for Ethereum and Investors #
If the ETF is approved, it could be a major step for the adoption of ethereum by traditional investors. Instead of complicated processes to buy and manually stake ethereum, people could soon simply buy a fund that automatically participates in the network and generates yield.
More accessibility often means more demand, which could impact the price of ethereum. At the same time, this move shows that major financial institutions are increasingly taking ethereum seriously as part of a modern investment portfolio.
This filing therefore marks an important moment, showing that crypto and traditional finance are growing closer together.