Ethereum (ETH) Price: BlackRock’s New Staked ETF Could Change the Game for Yield

TLDR

• BlackRock has registered for a new staked Ethereum ETF in Delaware, approximately 15 months after launching its flagship ETHA fund which has attracted $13.1 billion in inflows
• Staking offers an average annual return of approximately 3.95% on ETH, which could transform the ETF into a total-return product and attract yield-focused investors
• Ethereum whale addresses holding 10,000-100,000 ETH have reduced their collective balance by more than 150,000 ETH over four days as the price hovers near their $2,900 cost basis
• Ethereum ETFs have experienced seven consecutive days of outflows totaling over $1 billion, while ETH found support around $2,850 after rejection at $3,100 resistance
• The SEC under the Trump administration has introduced a generic listing standard enabling faster approvals for crypto ETF products, with around 70 applications currently awaiting approval

BlackRock has registered for a new staked Ethereum exchange-traded fund in Delaware. The filing signals the $13.5 trillion asset manager’s plans to expand beyond its current spot Ethereum product.

The Delaware name registration represents one of the first steps required to file for a new ETF. BlackRock still needs to submit additional documents before the proposed product can move toward regulatory approval.

The new staked ETF would complement BlackRock’s iShares Ethereum Trust ETF (ETHA), which launched in July 2024. ETHA has attracted $13.1 billion in inflows since its debut.

BlackRock’s current ETHA product does not include staking functionality. The company previously stated that staking involves operational complexities and regulatory issues that made it unfeasible at launch.

In July, BlackRock proposed a rule change with the SEC to add staking to ETHA. Other issuers submitted similar proposals at the same time.

The SEC under the Trump administration has shown more openness to crypto ETF products. The regulator recently introduced a generic listing standard that enables faster approvals without case-by-case assessment.

Bloomberg ETF analyst Eric Balchunas noted the staked ETH ETF is registered under the Securities Act of 1933. This registration requires full disclosure and strong investor protection measures before shares can be sold publicly.

Around 70 crypto products currently await regulatory approval. These applications were delayed by the US government shutdown that occurred across October and November.

REX-Osprey and Grayscale launched their own staked ETH ETF products in September and October. BlackRock’s filing follows these launches by several months.

Staking Returns Could Attract New Investors

Incorporating staking into an Ethereum ETF adds a yield component to price exposure. This transforms the fund into a total-return product rather than one based solely on price movement.

The average annual return on ETH staking sits at approximately 3.95%, according to Blocknative data. This yield could attract investors who previously avoided Ethereum ETF products due to their lack of income generation.

Market Pressure Mounts on ETH

Ethereum whale addresses holding between 10,000 and 100,000 ETH have reduced their collective balance by more than 150,000 ETH over four days. The selling comes as ETH’s price hovers around their realized price of $2,900.

Accumulation addresses, or wallets with no record of selling activity, have a cost basis at $2,860. Historically, ETH has recovered whenever its price approaches this level.

Ethereum ETFs extended their outflow streak to seven consecutive days on Wednesday. Total outflows exceeded $1 billion, according to FarSide data.

ETH led crypto liquidations with $215 million in total over the past 24 hours. Long liquidations reached $186 million during this period, based on Coinglass data.

ETH bounced near the $2,850 support level after facing rejection at the $3,100 resistance. The cryptocurrency is attempting another move above the resistance level.

A rise above $3,100 could push ETH toward $3,470. The price would need to clear the 20-day Exponential Moving Average on the way up. A move below $2,850 could send ETH toward the $2,380 support level.

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