BlackRock makes a move that could turn the Ethereum market upside down.
Global giant BlackRock continues to expand its footprint in the crypto sector. On Friday, the company filed documents with the SEC to launch the iShares Ethereum Staking Trust, a new fund that not only tracks the price of ETH but also includes staking yield for investors.
This is BlackRock’s second Ethereum product, following the launch of its first spot ETH fund last year.
What does the new fund include?
According to the registration filing, the fund will:
- track the market price of Ethereum
- activate staking once legal and tax conditions allow it
- provide investors the opportunity to earn staking rewards (between 3% and 5% annually)
With this move, BlackRock becomes the latest major player to integrate staking into its products, following Grayscale and Fidelity.
Why does this matter?
Until recently, the SEC was firmly against it. Former chairman Gary Gensler insisted that all ETF applications remove staking functionality, arguing it could be classified as an unregistered securities offering.
Now, however, the regulatory climate is different.
New SEC chairman Paul Atkins is showing a much more flexible approach, and several companies have already filed or amended ETF applications to include staking.
BlackRock is taking advantage of the moment.
What makes staking functionality different?
With staking, validators help secure and operate the Ethereum network and receive rewards in return. The yield typically ranges between 3% and 5% annually, depending on:
- validator participation
- network conditions
- total amount of locked ETH
For investors, this means dual returns:
asset appreciation + staking yield.
The crypto ETF market is expanding
In recent months, we’ve seen a strong surge in ETF activity:
- new funds launched for DOGE and XRP
- most major companies expanding their crypto exposure
- regulations becoming clearer and more predictable
This is a powerful signal of institutional entry into crypto, which always impacts liquidity and long-term market interest.
What does this mean for the market?
- More institutional interest in Ethereum
- Introduction of staking yield into traditional financial products
- Likely increase in inflows to ETH funds
- Higher liquidity and stronger network legitimacy
If the trend continues, 2026 could bring even more ETFs, including products with advanced features like lending, multi-asset structures, and even DeFi exposure.
If you want to see the bigger picture…
This news about Ethereum and BlackRock is just one piece of a much larger process. The regulatory environment is shifting, institutions are becoming more active, and all of this has a direct influence on the crypto market. If you want to understand why right now these changes are happening and what comes next, read our other article:
“This Could Be the Most Important Week for Crypto in Years” — it provides context that will help you see how all of this fits into the bigger crypto picture.
