In the latest move from asset managers, BlackRock is reportedly looking to include staking in its future Ethereum ETFs, providing investors 3.2% annual yield. BlackRock’s head of digital assets, Robert Mitchnick highlighted this strategic move. It seeks to entice institutional investors into Ethereum ETFs by providing a mix of capital appreciation and passive earnings. Longer term, the initiative hopes to bridge the gap between these decentralized systems and traditional finance. BlackRock is a leading example of this strategy—just look at its BUIDL fund.
This new model provides investors the opportunity to earn rewards based on the capital appreciation of Ethereum. It allows them, in turn, to receive additional income through staking rewards. Bringing staking into Ethereum ETFs could change the landscape of crypto investment products. Such a change would draw a great deal of retail and institutional investor interest including from ESG-minded investors.
Potential of Staking for Ether ETFs
Robert Mitchnick, BlackRock’s head of digital assets, discussed the potential of staking for Ether ETFs in a March 2025 interview with CNBC. He pointed out that staking in Ethereum ETFs would earn around 3.2% per year according to industry research. Mitchnick stressed though that rewarding potential return promises to bring massive institutional investment to Ethereum.
"An ETF has been a compelling vehicle for holding Bitcoin, but it’s less perfect for ETH today without staking" - Robert Mitchnick
Staking integration further improves Ethereum ETFs unbelievably. This positive change renders them much more attractive than Bitcoin ETFs. By providing attractive staking rewards in addition to the interest and dividends publicly listed, BlackRock’s new investment vehicle promises investors a more complete and sexy investment product.
BlackRock's Integration of Decentralized Systems
Ethereum is by far the most important piece of BlackRock’s plan to combine decentralized technologies with traditional finance. Our BTC BUIDL fund embodies this strategy to a T. That’s noteworthy given BlackRock’s evident commitment to researching and eventually integrating blockchain tech into its investment products. The latest push for staking to be explicitly included in Ethereum ETF speaks volumes about this commitment.
We know BlackRock has been actively looking for ways to allow investors to capitalize on Ethereum. They seek to provide profit potential through both appreciation and passive income. This approach reflects a broader trend in the financial industry towards embracing digital assets and leveraging blockchain technology to enhance investment strategies. The company’s efforts in this area will be watched intensely by industry players and investors as well.
Impact on Investor Interest
Whatever the SEC intends to do next, allowing the exploration of staking in Ethereum ETFs set to launch would enormously increase investor interest. Robert Mitchnick noted that approval of this feature would significantly increase the attractiveness of Ethereum ETFs.
"Approval of this feature could significantly boost investor interest" - Robert Mitchnick
Our staking program comes with a guaranteed yield of 3.2% APR. This compelling return should attract a wide range of investors seeking growth as well as income. This step would create a significant amount of liquidity and trading volumes in Ethereum ETFs. In doing so, it could do more to entrench their role as a mainstream investment product.
