BlackRock Files for Ethereum Staking ETF
BlackRock, the world’s largest asset manager, has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an Ethereum staking exchange-traded fund (ETF).
BlackRock entered the crypto market in a major way in 2024 with the launch of its spot Bitcoin ETF. The product quickly became one of the firm’s most successful ETFs, generating more annual revenue than many long-standing BlackRock funds that have been on the market for decades.
Following the strong performance of the Bitcoin ETF, BlackRock’s move into Ethereum staking is seen as a positive signal for Ethereum. If approved, the ETF could attract more traditional investors who are looking for crypto exposure combined with yield.
What Is Ethereum Staking?
Staking involves locking up cryptocurrency to help secure a blockchain network and process transactions. In return, participants earn rewards paid in the same cryptocurrency, similar to earning dividends from stocks.
Ethereum staking typically offers annual yields of around 3% to 4%.
Staking is part of Ethereum’s Proof-of-Stake (PoS) system, which determines who can create the next block on the blockchain. Ethereum previously used a Proof-of-Work (PoW) system, like Bitcoin, which relies on mining. In 2022, Ethereum transitioned to PoS to reduce energy use and remove the need for mining.
BlackRock and Grayscale Ethereum Staking ETFs
BlackRock already offers a spot Ethereum ETF, but it does not currently include staking rewards. The firm initially planned to add staking, but the feature was not approved in time for the ETF’s launch.
Instead of changing the existing product, BlackRock has applied for a separate Ethereum staking ETF. If approved, investors would be able to choose between a standard Ethereum ETF that tracks price movements and a staking ETF that also generates yield.
Grayscale was the first major asset manager to launch an Ethereum staking ETF in October 2025. Its approval signaled growing regulatory acceptance and paved the way for other firms, including BlackRock, to follow.
ETFs vs. Self-Custody
There are key differences between holding Ethereum through an ETF and owning it directly in a self-custody wallet.
With self-custody, investors fully control their crypto assets. ETFs, on the other hand, hold the assets on behalf of investors. This means ETF investors can only buy or sell during regular market hours, while self-custody allows crypto to be moved, traded, or sold at any time.
ETFs also charge annual management fees. Self-custody wallets do not have ongoing fees, aside from standard Ethereum network transaction costs.
Because of this, many crypto users prefer self-custody solutions that give them full control over their assets while still offering staking opportunities.
Featured image from: thecryptonomist.com