BlackRock officially submits Ethereum staking ETF application—Is Ethereum entering the era of "price + yield" dual engines?

The world’s largest asset management company, BlackRock, officially filed the iShares Staked Ethereum Trust ETF prospectus with the U.S. Securities and Exchange Commission on December 8, 2025. This brand-new product will become BlackRock’s fourth crypto-related ETF, following spot Bitcoin, spot Ethereum, and the “Bitcoin Yield” ETF.

This isn’t the first time BlackRock has expressed interest in Ethereum staking. As early as July this year, the company submitted a rule change request seeking to add staking functionality to its existing iShares Ethereum Trust (ETHA). Even earlier, in May, the head of BlackRock’s digital assets division stated that current Ethereum ETFs were “imperfect” due to the lack of staking functionality.

01 Event Core: From Preparation to Official Filing

According to information shared by Bloomberg analysts on social media, BlackRock has submitted a Form S-1 official prospectus this time. This marks the product’s transition from the preparation stage to the critical phase of awaiting substantive review by the SEC.

This was not a one-step action. On November 19, a month earlier, BlackRock had already registered the iShares Staked Ethereum Trust ETF trust entity in Delaware. This statutory trust structure is the standard preliminary step for U.S. ETF issuers to launch commodity and crypto products.

BlackRock’s strategy in the crypto space is clearly visible. Its flagship spot Ethereum ETF ETHA, launched in July 2024, has already attracted about $13.1 billion in capital inflows.

02 Market Landscape: Institutional Players and Regulatory Breakthroughs

While the U.S. staked Ethereum ETF market is still in its early stages, its structure is emerging. In late September 2025, the REX Osprey ETH + Staking ETF was the first to launch, becoming the first Ethereum ETF combining spot holdings and staking functionality.

Shortly after, in October, Grayscale successfully added staking capabilities to its listed Ethereum product, establishing the industry’s first regulated yield-pass-through benchmark. With BlackRock’s official entry, there are now three distinct market approaches: BlackRock’s cautious compliance, Grayscale’s technological innovation, and REX Osprey’s market leadership.

The regulatory environment is undergoing a key transformation. In October 2025, the SEC approved universal crypto ETP listing standards. This rule streamlined the approval process, providing a clearer framework for subsequent products, including staking-based products.

03 Ethereum Staking: Technical Mechanisms and Real Yields

The core of Ethereum staking is that participants lock up ETH in the network, running validator nodes to maintain the security and operation of the Ethereum blockchain, and are rewarded with newly issued ETH.

This mechanism fundamentally changes ETH’s asset profile. It is no longer solely reliant on future price appreciation but now has an added cash flow yield, making its logic more akin to interest-bearing government bonds or dividend-paying blue-chip stocks.

According to network data, Ethereum staking currently yields an annualized return of about 3% to 5%. Based on BlackRock’s spot Ethereum ETF ETHA’s AUM of $8.7 billion, if all assets are staked, it could generate tens of millions of dollars in additional yield for fund holders each year.

04 Core Sectors: Who Benefits from the Staking ETF Wave

The launch of staking ETFs will have an impact beyond a single product, injecting strong momentum into several key sectors of the Ethereum ecosystem.

First is liquid staking protocols. Traditional staking locks up ETH liquidity, which conflicts with the ETF’s requirement for daily redemption. Liquid staking protocols like Lido (stETH) and Rocket Pool (rETH) solve this liquidity problem by issuing derivative tokens that represent staked assets. The market has already responded: after BlackRock’s staking application news broke, Lido’s governance token LDO surged over 20% within 24 hours.

Next are centralized exchanges. For traditional financial institutions like BlackRock, running nodes directly is technically challenging. Partnering with compliant platforms such as Coinbase, Kraken, and OKX—which provide mature, institutional-grade staking services—is a more realistic option. For example, Coinbase’s cbETH is a liquid staking token issued by a regulated platform, making it easier for traditional finance to accept.

Finally, node service providers and custodians. As massive institutional funds flow into staking via ETFs, demand for professional, compliant, and secure node operation and custody services will surge, creating huge market opportunities for related service providers.

05 Market Impact: Supply-Demand Structure and Price Expectations

The profound impact of staking ETFs on Ethereum will ultimately be reflected in its supply-demand structure and market price.

On the supply side, once a large amount of ETF-held ETH is staked, these assets will be temporarily “removed” from the circulating market. As of November 2025, the total amount staked on the Ethereum Beacon Chain exceeds 40 million ETH, accounting for over 30% of the circulating supply. The participation of institutional ETFs will accelerate this trend, further tightening ETH’s secondary market liquidity.

On the demand side, staking functionality will attract a new group of traditional fixed-income and dividend-seeking investors. Previously, these investors may have been put off by crypto’s lack of cash flow, but staking yield will fill that gap.

Some analysts have already raised their long-term price targets for Ethereum based on this. Some believe that in this cycle, with the combined effects of staking yields, deflationary mechanisms, new ETF demand, and Layer 2 developments, Ethereum’s price potential is significant.

06 Latest Market Moves and Gate Data Reference

Although BlackRock’s application has drawn widespread market attention, investment decisions should be based on the latest market data. Below is an overview of recent Ethereum-related market data compiled from public information. Please note that some dynamics and prices should be updated according to Gate platform’s real-time data on December 9.

07 Outlook: Deep Integration of Traditional Finance and Crypto Ecosystem

BlackRock’s application for a staked Ethereum ETF is far more than just launching a new product. It symbolizes traditional financial capital’s formal recognition and adoption of the native value capture mechanism of crypto—staking yield. This means Wall Street’s vast capital will no longer view Ethereum merely as a “digital commodity,” but will begin to understand and utilize its intrinsic value as productive capital and network infrastructure.

This race, led by global asset management giants, may ultimately prompt the entire crypto asset class to evolve into more mature, sophisticated, and mainstream financial instruments. For the average investor, conveniently obtaining the “yield” of crypto assets through regulated ETFs could become a standard allocation option in the coming years.

As BlackRock’s head of digital assets said, an Ethereum ETF without staking is “imperfect.” And today, this giant managing over $13.5 trillion in assets is attempting to put the final piece of the puzzle in place.

Future Outlook

Ethereum’s price showed a positive response after the announcement. On the Gate platform, Ethereum futures contracts surged, reflecting the market’s optimism about the prospects of staking ETFs.

Once BlackRock’s product is approved, the size of the U.S. staked Ethereum ETF market could surpass $5 billion by the end of 2026. At that point, over 40 million staked Ethereum will not only support the security of the blockchain network but will also weave a capital network linking crypto-native yields with the traditional financial world.