BlackRock Submits First Staked Ethereum ETF, Signaling a Shift of Institutional Investors Toward Yield Assets

Source: TokocryptoBlog Original Title: BlackRock Officially Files for Staked Ethereum ETF, a Historic Move! Original Link: The asset management giant BlackRock is once again shaking up the crypto industry by filing for the iShares Staked Ethereum Trust ETF, the company’s first product in the United States providing direct exposure to Ethereum staking for institutional investors.

This move comes after BlackRock’s Ethereum fund previously surpassed $11 million in assets under management, marking a growing market interest in crypto strategies that rely not only on price but also generate (yield) from staking.

In the early prospectus dated December 5, BlackRock explained that this ETF will reflect ETH price performance while also collecting staking rewards from a portion of staked assets. The trust’s net asset value (NAV) will be increased by these rewards, although the company warned of regulatory and operational risks that could affect performance.

Multi-Custodian Structure for Institutional Security

To ensure compliance and reduce risks, BlackRock has prepared a layered custodian model:

• Coinbase Custody will be the custodian of ETH assets
• BNY Mellon will act as cash custodian and administrator
• Anchorage Digital Bank has been appointed as an additional custodian

BlackRock Fund Advisors will serve as trustee, while iShares Delaware Trust Sponsor LLC acts as sponsor. This structure demonstrates BlackRock’s effort to position the product as a secure, standardized institutional infrastructure.

Relying on Third-Party Staking Providers

Instead of running validator nodes themselves, BlackRock will partner with approved third-party staking providers. Staking allocations will be determined based on provider performance, reputation, and reliability. Rewards and slashing risks are key factors mentioned in the documentation.

The ETF is planned to be listed on NASDAQ with the ticker “ETHB” and will issue and redeem units in packages of 40,000 shares.

Institutional Demand Shifts Toward Yield-Based Products

The staking ETH ETF application signifies a major strategic shift among institutional investors. They are no longer satisfied with crypto products that only offer price exposure but are now seeking tokenized instruments that generate operational income.

If approved by regulators, this ETF could influence how staking rewards are classified legally—a topic still under discussion in the United States. With this move, BlackRock appears ambitious to lead a new phase of digital asset adoption.

Conversely: BlackRock Bitcoin ETF Records Worst Outflow

Amid these new innovations, the performance of BlackRock’s Bitcoin fund has gone in the opposite direction. The iShares Bitcoin Trust recorded five consecutive weeks of withdrawals, totaling over $2.7 billion as of November 28. Withdrawals continued on Thursday with an additional $113 million out, putting this ETF on track for a record six-week outflow, despite Bitcoin prices remaining relatively stable.

This phenomenon reflects a shift in investor sentiment from Bitcoin to crypto instruments that provide yields, such as Ethereum staking.