BlackRock accelerates crypto push with staked Ethereum ETF filing

BlackRock, the world’s largest asset manager, has officially filed for a staked Ethereum (ETH) exchange-traded fund. If the proposed product is approved, it will hold Ethereum and earn staking rewards through approved validators.

The iShares Ethereum Staking Trust (ETHB), was first hinted at in November when BlackRock registered the name in Delaware.  However, BlackRock submitted an S-1 registration statement with the US SEC on Friday with a proposed product to be named the iShares Staked Ethereum Trust ETF (ETHB).

According to the SEC guidelines, the filing kicks off the review process. However, to trigger a formal deadline for SEC approval or denial, the fund’s listing exchange must still submit a separate Form 19b-4. 

BlackRock’s structure excludes leverage, derivatives, and lending

According to the filing, the fund is designed to track the price of Ethereum while also collecting staking yields. The structure excludes leverage, derivatives, and lending. It will operate as a simple, passive investment vehicle. Coinbase Custody will serve as the primary custodian, while Anchorage Digital is listed as an alternative to diversify risk and improve operational security.

The ETF’s shares will trade on Nasdaq under the ticker ETHB once approved. Only authorized participants will be allowed to create or redeem shares in large blocks. The filing also outlines details on custody, staking arrangements, issuance, redemption, and administrative roles.

Before, the SEC, which was run by Chair Gary Gensler at the time, told companies to take out certain parts from their filings. The agency had said that staking services offered by sites like Kraken and Coinbase could be considered unregistered securities offers. But with Paul Atkins as the pro-crypto Chair, the rules are less strict.

BlackRock and VanEck are now among several issuers resubmitting or amending ETF filings to include staking. While others are modifying their existing products, BlackRock opted to launch an entirely new fund separate from the iShares Ethereum Trust (ETHA).

ETHA currently holds about $11 billion in ETH. It will remain separate from the staking version. The staked fund, if approved, would provide investors with exposure to Ethereum’s yield-generating mechanism without requiring them to stake their own assets.

 BlackRock’s ETHA shoulders nearly the entire weekly decline 

The first week of December saw Ether and Bitcoin’s exchange-traded funds (ETFs) lose ground after a mix of heavy mid-week reversals. Ether ETFs shed $75.21 million in a week. BlackRock’s ETHA was responsible for nearly the entire weekly decline.  

The total net inflow pulled back to $12.88 billion.BlackRock is responsible for this entire amount. Of the nine funds, none recorded inflows.

Bitcoin ETFs were a bit better.  The US BTC spot exchange-traded funds (ETFs) saw $54.79 million in positive flows. The total net inflow is now at $54.79 billion.

Of the twelve BTC ETFs, five recorded inflows, and one saw outflows. BlackRock accounts for the entirety of the negative flows, letting go of $32.49 million. On the other hand, Ark&21Shares added $42.79 million, followed by Fidelity’s $27.29 million.

Ethereum jumps 13%

Ethereum is up approximately 13.7% in the last 7 days. However, although the price has gone up, it remains stuck in a rough band that won’t budge. ETH recently hit resistance between $3,165 and $3,550 and slid back. However, support remains in place between $2,745 and $2,917.

For now, Ethereum is stuck between these levels. Experts are keeping an eye on $3,169 as the level that needs to be broken for a bigger move up. Meanwhile, the coin is up nearly 3% in the last 24 hours, trading at $3116.91.

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