BlackRock Submits S-1 Registration for New ETF
On Friday, BlackRock submitted an S-1 registration statement to the Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) called the iShares Staked Ethereum Trust, or ETHB. This ETF deviates from its previously established iShares Ethereum Trust (ETHA) by not only reflecting the value of Ethereum but also incorporating earnings from staking Ethereum that the fund maintains.
“The trust is a passive investment vehicle that does not seek to generate returns beyond tracking the price of Ethereum and staking a portion of the Ethereum it holds (which may vary over time).”
Background and Market Context
The introduction of ETHB comes shortly after the formation of a Delaware statutory trust in November, a procedural step commonly associated with the launch of crypto and commodity ETFs. Earlier in the year, BlackRock had previously attempted to include a staking component for its existing spot Ethereum ETF, ETHA, but the SEC has postponed a formal ruling on this proposal multiple times, with the latest delay occurring in early September.
Currently, it’s uncertain how the introduction of ETHB will influence BlackRock’s prior plans regarding staking in ETHA, as a representative for BlackRock declined to provide comments on ETHB’s filing.
Market Performance of Ethereum ETFs
The market has seen a series of Ethereum staking ETFs emerge following the establishment of generic listing standards for commodity trusts, with Grayscale’s ETHE debuting in early October, followed by the REX-Osprey ETH + Staking ETF. However, these new entrants have not diminished the success of BlackRock’s initial spot ETF, which boasts over $11 billion in assets under management—approximately 3.6 million ETH. In contrast, Grayscale’s ETHE and ETH Mini Trust combined manage less than $5 billion (about 1.8 million ETH).
BlackRock’s Dominance in the ETF Market
BlackRock’s prominence in the ETF sphere is underscored by its performance in Bitcoin investments as well, particularly with its iShares Bitcoin Trust (IBIT), the largest crypto ETF to date, holding around $70 billion in assets. As of Monday, IBIT saw a modest increase of 1% even as Bitcoin itself dropped by 1% over the last day, currently trading at $90,390. Meanwhile, ETHA experienced a robust rise of over 3% with Ethereum trading at approximately $3,122.
Upon approval, the iShares Staked Ethereum Trust ETF (ETHB) is slated to be available for trading on Nasdaq, joining BlackRock’s roster of ETFs.
