The asset management giant BlackRock is continuing to push its strategy of expanding into the cryptocurrency space by proposing to support staking for the Ethereum ETF – a move that could usher in an era of integration between traditional finance (TradFi) and decentralized finance (DeFi).
BlackRock meets with the SEC, proposing staking for the Ethereum ETF fund
According to the latest meeting minutes from the U.S. Securities and Exchange Commission (SEC), representatives of #BlackRock have been working with a dedicated group on digital assets to discuss allowing the use of assets held in the ETF for staking. Although specific details have not been disclosed, this proposal aims to create additional passive income from the amount of ETH held in the Ethereum ETF.
Since BlackRock currently only offers ETFs for Bitcoin and Ethereum, staking applies only to ETH. This is the first time a major financial institution has publicly proposed the integration of staking into ETFs in the U.S. – a revolutionary step if approved.
Additional update: payments in ETH and the performance of ETF funds
BlackRock has also updated its S-1 filing for the Ethereum ETF with the SEC, proposing to allow customers to pay directly with $ETH , instead of just cash as currently. This improves the experience for crypto investors and aligns with the decentralized nature of the asset.
The report to the SEC also stated:
The Bitcoin IBIT fund holds over 591,000 BTC (~60 billion USD), accounting for over 51% of the total market share of the Bitcoin ETF industry.
#ETFEthereum (ETHA) holds 1.2 million ETH (~3 billion USD), corresponding to 36.5% market share.
The tokenized real asset fund BUIDL has reached a capitalization of 2.8 billion USD, holding the position of the largest RWA fund in the world.
The policy context is gradually 'opening up' for crypto
BlackRock's move comes amid positive developments for crypto under the Trump administration at the SEC, such as the appointment of new Chairman Paul Atkins with progressive views, the establishment of a dedicated digital asset group, and clarifying regulations for memecoins and PoW coins. However, the SEC has not yet approved any additional altcoin ETFs, and filings related to $DOGE , $LTC , XRP have all been delayed.
However, the market is still very optimistic: entities such as 21Shares, Jito, and Canary Capital have also submitted staking applications for the ETF – indicating that the race to harness benefits from crypto assets in ETFs is heating up day by day.
Traditional crypto is awakening
With over 3 billion USD inflow into Bitcoin ETFs just at the end of April, increasing the total buying flow to over 40.3 billion USD, it can be seen that institutional investor confidence is returning strongly after a period of stagnation in February-March.
If the Ethereum ETF staking proposal is green-lighted by the SEC, this will be a major turning point not only for BlackRock but also a signal for the entire market about broader acceptance of decentralized finance.
⛔ Risk warning: Investing in cryptocurrencies carries many risks and high volatility, not suitable for everyone. Users should consider carefully before participating and should not invest beyond their financial capacity.