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.
Previously, the SEC, under Chair Gary Gensler, had advised companies to remove certain components from their filings, suggesting that staking services offered by platforms like Kraken and Coinbase could be considered unregistered securities offers. However, under a less strict regulatory environment, the approach appears to be changing.
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 approximately $11 billion in ETH and 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 Suffers Weekly Decline
The first week of December saw Ether and Bitcoin’s exchange-traded funds (ETFs) experience a decline after mid-week reversals. Ether ETFs shed $75.21 million in a week, with BlackRock’s ETHA being responsible for nearly the entire weekly loss.
The total net inflow pulled back to $12.88 billion, with BlackRock accounting for this entire amount. None of the nine Ether ETFs recorded inflows during this period.
Bitcoin ETFs performed slightly better, with US BTC spot exchange-traded funds (ETFs) seeing $54.79 million in positive flows, bringing the total net inflow to $54.79 billion.
Among the twelve BTC ETFs, five recorded inflows, and one experienced outflows. BlackRock accounted for the entirety of the negative flows, letting go of $32.49 million. In contrast, Ark&21Shares added $42.79 million, followed by Fidelity’s $27.29 million.
Ethereum Price Performance
Ethereum is up approximately 13.7% in the last 7 days. Despite the price increase, it remains within a defined trading range. ETH recently encountered resistance between $3,165 and $3,550 before declining. Support levels are currently holding between $2,745 and $2,917.
For the time being, Ethereum is trading within these levels. Analysts are closely watching the $3,169 mark as a key level that needs to be surpassed for a significant upward movement. In the past 24 hours, the coin has risen nearly 3%, trading at $3116.91.