In a decisive move for the institutional crypto market, BlackRock has formally filed with U.S. regulators to launch a staked Ethereum exchange-traded fund (ETF). The filing for the iShares Ethereum Staking Trust (ETHB) marks a strategic push to bring on-chain crypto yields directly to traditional investment portfolios, capitalizing on a shifting regulatory landscape.
Navigating the Road to Regulatory Approval
BlackRock’s journey toward this product began on November 19, 2025, with the quiet registration of the trust in Delaware, a common preliminary step for ETF issuers. The formal submission of the S-1 registration statement to the Securities and Exchange Commission (SEC) on December 8 initiated the official review process. However, a final launch requires clearing two separate hurdles. The SEC must declare the S-1 “effective”, and the listing exchange must also secure approval for a related rule change via a Form 19b-4 filing. Analysts note that this filing aligns with a noticeable shift in the SEC’s stance on crypto under new leadership, making the approval path more plausible than in previous years when staking features were discouraged.
Product Design and a Crowded Competitive Field
According to the filing, the ETHB ETF aims to stake approximately 70-90% of its Ethereum holdings to earn network validation rewards, distributing this yield to shareholders quarterly after fees. The remaining unstaked Ether would be held as a liquidity reserve to manage redemptions. While the exact fee was not specified, it may follow the model of BlackRock’s highly successful spot Ethereum ETF (ETHA), which charges a 0.25% management fee. BlackRock enters a market where competitors already have a head start. REX-Osprey launched the first U.S. staked Ethereum ETF (ESK) in late September 2025, and Grayscale has since enabled staking features in its own Ethereum product. VanEck has also signaled its intent with a similar registration.
Implications for Ethereum and Broader Adoption
The filing is widely seen as a major vote of confidence in Ethereum’s utility. By offering a simple, regulated path to earn staking rewards, BlackRock could unlock significant new demand from yield-seeking institutional investors who are unwilling to navigate the technical complexities of direct staking. For the broader crypto market, the move signifies the accelerating integration of native blockchain functions—like proof-of-stake rewards—into mainstream financial products. BlackRock’s immense scale and distribution network could act as a powerful catalyst, drawing billions in traditional capital toward crypto-based yield for the first time.
The next critical milestone will be the public filing of the exchange’s 19b-4 form, which will start the SEC’s formal review clock and provide a clearer timeline for a potential launch. While the process may take months, BlackRock’s application has undeniably set the stage for the next major evolution of cryptocurrency investment vehicles.
