BlackRock Pushes SEC for Staking in ETH ETFs, Tokenized Assets

BlackRock, the world's largest asset manager, has been actively engaging with U.S. regulators to advance its suite of digital asset products. In a recent meeting with the Securities and Exchange Commission (SEC),
presented its expanding range of digital asset offerings, including a spot Bitcoin ETF (IBIT), an Ethereum fund (ETHA), and a tokenized liquidity fund (BUIDL). The firm emphasized how these products align with current market trends and sought regulatory clarity on staking within ETFs and the tokenization of assets.During the meeting, BlackRock advocated for the inclusion of staking in Ethereum ETFs, arguing that it would enhance the yield potential for investors. Robert Mitchnick, Head of Digital Assets at BlackRock, described staking for spot ETH ETFs as a significant step forward, despite acknowledging the regulatory and operational challenges ahead. The SEC, under Chair Gary Gensler, has previously blocked staking features in ETH ETFs, but there is a potential shift in stance that could allow ETH ETFs to generate revenue by earning yield. Other firms, such as
and Grayscale, are also lobbying for staking support. Notably, the NYSE proposed a rule change in February to enable staking in Grayscale’s fund, which is currently under review.The meeting also covered BlackRock’s push to tokenize traditional financial assets. The firm highlighted its $2.9 billion BUIDL fund, a tokenized U.S. Treasury product, promoting blockchain-based solutions for bonds and securities. These solutions offer faster settlements, lower fees, and round-the-clock trading. Rival efforts include Franklin Templeton’s BENJI fund and Robinhood’s blockchain project aimed at offering tokenized U.S. stocks to users.
While the SEC has not disclosed the outcome of the meeting, BlackRock’s continued advocacy signals growing momentum in blending crypto innovation with mainstream finance. The firm's efforts to seek regulatory guidance on staking and tokenization reflect its strategic vision to integrate these innovative financial instruments into mainstream investment products. BlackRock's proactive approach to shaping policy in collaboration with regulators underscores its commitment to navigating the complex regulatory environment and paving the way for institutional adoption of digital assets.
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