BlackRock Doubles Down: Files for Staked Ethereum ETF After $11B ETH Fund Success

BlackRock just signaled its next big crypto move—and it's all about putting Ethereum to work.

From Custodian to Capital Allocator

The world's largest asset manager isn't content with just holding digital assets. Its latest filing reveals a pivot from passive products to active strategies that generate yield. By staking the Ethereum in its proposed ETF, BlackRock aims to capture the network's native rewards—turning a static fund into a revenue-generating vehicle. It's a fundamental shift in how institutional products are structured.

The $11 Billion Footprint

This isn't a speculative bet. The move builds directly on the firm's existing $11 billion Ethereum fund. That established footprint provides the scale and credibility needed to navigate regulatory channels and market infrastructure. It also sends a clear message: Ethereum's utility, not just its price, is now a core part of the institutional thesis.

Why This Changes the Game

For traditional finance, staking has been a operational headache wrapped in regulatory uncertainty. BlackRock's entry legitimizes the mechanics. It provides a blueprinted, compliant path for other giants to follow, potentially unlocking billions in dormant institutional capital to secure the Ethereum network. The race isn't just to hold crypto anymore—it's to put it to work.

The Fine Print and the Future

Approval isn't guaranteed. Regulators will scrutinize everything from custody of staking keys to the distribution of rewards. But the filing itself is a watershed. It forces a conversation about crypto's mature financial primitives: yield, security, and utility. One cynical take? Wall Street finally found a fee structure it likes better in crypto than in traditional bonds.

BlackRock isn't just dipping a toe—it's building an entire pool. And everyone's watching to see who dives in next.

Multi-Custodian Structure Anchored by Coinbase and BNY Mellon

The filing outlines a layered custody and administration model. Coinbase Custody Trust Company is slated to serve as the ETH custodian, while The Bank of New York Mellon will act as cash custodian and administrator.

Anchorage Digital Bank is listed as an additional custodian, strengthening the trust’s regulated oversight and redundancy. BlackRock Fund Advisors will serve as trustee, and iShares Delaware Trust Sponsor LLC is listed as the sponsor of the trust. The structure indicates a clear intention to position the product as a compliant infrastructure designed for institutional comfort and risk management.

Provider-Facilitated Staking, Not Validator Operation

Instead of running validator infrastructure directly, the trust will rely on approved third-party staking service providers. The sponsor will determine how staking is allocated based on provider performance, reliability, and reputation.

Staking operations may be executed through affiliates of the custodians or other regulated partners, with the prospectus noting both reward potential and slashing risk as material considerations for investors.

The trust intends to issue shares continuously and list on NASDAQ under the ticker “ETHB”, with creation and redemption occurring in standardized baskets of 40,000 shares.

Institutional Demand Shifts Toward Yield-Bearing Crypto Products

BlackRock’s filing indicates a strategic shift as institutional investors increasingly seek exposure beyond price-only products and toward yield-bearing, tokenized financial instruments. If approved, the ETF may help define how staking rewards are classified, a topic still evolving in U.S. regulatory circles.

The staked ETH ETF positions BlackRock at the center of this transition, reflecting its ambition to shape the next phase of digital asset adoption, one in which exposure is not merely speculative but grounded in the operational economics of blockchain networks.

BlackRock’s Bitcoin ETF Bleeds $2.7B

Meanwhile, BlackRock’s iShares Bitcoin Trust has logged its longest stretch of weekly withdrawals since the fund launched in January 2024, marking a sharp turn in institutional sentiment toward Bitcoin even as prices steady. Investors pulled more than $2.7 billion from the fund over the five weeks ending Nov. 28, according to data from SoSoValue.

Redemptions continued on Thursday with an additional $113 million, putting the ETF on track for a sixth consecutive week of outflows.