BlackRock Advances Staked Ethereum ETF Plans as Competition Intensifies

BlackRock has taken another strategic step into the expanding crypto ETF market by registering its iShares Staked Ethereum Trust in Delaware on November 19. The move signals the asset manager’s intention to target growing institutional demand for yield-generating Ethereum products. While the registration marks an early milestone, the proposed staked ETH ETF will still require additional regulatory filings before it can move forward.

This Delaware registration follows a year of notable regulatory developments shaping the ETF landscape. Bloomberg ETF analyst Eric Balchunas noted that the fund is registered under the Securities Act of 1933, a standard precursor to formal filings. Earlier, BlackRock attempted to incorporate staking into its existing Ethereum product, the iShares Ethereum Trust (ETHA), prompting Nasdaq to submit an amended 19b-4 filing to the SEC in July 2025.

Historically, the SEC has hesitated to approve ETFs involving staking due to concerns about custodial risk and yield structures. However, regulatory sentiment has shifted in favor of crypto ETF innovation. In September 2025, the SEC approved generic listing standards for crypto ETFs, eliminating the need for individual reviews and accelerating product launches for compliant issuers.

BlackRock’s latest move comes as competitors gain traction in the staked Ethereum ETF segment. REX-Osprey introduced ESK in September 2025, becoming the first US-listed ETF under the 1940 Act to offer both Ethereum exposure and staking rewards, with monthly distribution to investors. Grayscale followed in October by enabling staking within its Ethereum and Solana ETFs, integrating rewards directly into NAV for improved tax efficiency.

Despite growing competition, BlackRock continues to focus exclusively on Bitcoin and Ethereum, citing deep liquidity, robust market demand, and institutional adoption. This strategy has delivered significant results. ETHA has recorded $13.09 billion in cumulative inflows and $11.47 billion in assets, while its Bitcoin ETF, IBIT, leads the market with $63.12 billion in inflows and $72.76 billion in assets.

With regulatory barriers falling and rival issuers capturing early market share, BlackRock’s success in staked Ethereum ETFs will depend on how efficiently it executes its next steps. The coming months will reveal whether the industry giant can reclaim momentum in this fast-evolving sector.