BlackRock has submitted an S-1 registration statement to the SEC for a new product named the iShares Ethereum Staking Trust ETF (ETHB). This fund will let investors benefit from Ethereum's price changes and earn staking rewards. It is different from BlackRock's existing spot Ethereum ETF, ETHA
Staking and Custody Details
The new ETF aims to track Ethereum's performance and generate returns from staking some of its assets. These returns will be shared with shareholders.
Staking Allocation: BlackRock plans to stake about 70% to 90% of the trust's Ethereum holdings under normal market conditions.
Custodians: Coinbase Custody Trust Company is the main custodian for the fund, while Anchorage Digital Bank serves as an alternative custodian to help manage risk.
Liquidity Management: The filing mentions maintaining a reserve of unstaked Ether to handle liquidity and redemption requests without affecting staking operations.
Regulatory Context
This filing comes amid changes in the U.S. regulatory environment. The SEC, under new leadership, is showing a greater willingness to approve crypto-related products with staking features. Other asset managers like Grayscale and VanEck are also trying to add staking to their offerings. Initially, the BlackRock spot Ethereum ETF, ETHA, which has over $11 billion in assets, did not include staking due to previous regulatory concerns.
The SEC filing begins the official review process for the new ETHB fund, which may be listed on the Nasdaq exchange if it gets approved.
