Ethereum News Today: BlackRock's crypto ETFs hit $20B on institutional inflows and regulatory staking advances

BlackRock’s crypto exchange-traded funds (ETFs) have crossed the $20 billion threshold in assets under management (AUM), driven by substantial inflows from institutional investors and regulatory advancements in staking mechanisms [1]. This figure reflects a surge in demand for regulated crypto exposure, with over $160 million in Bitcoin and Ethereum transferred into BlackRock’s IBIT and ETHA ETFs in the past week alone. The ETHA ETF, in particular, has attracted multiple deposits of 10,000 Ethereum units, signaling investor anticipation for Ethereum’s anticipated staking integrations [1].

Regulatory developments have further amplified optimism. The U.S. Securities and Exchange Commission (SEC) recently acknowledged staking as a potential feature in its Ethereum ETF amendment, though the agency has not yet finalized approval [1]. This acknowledgment could pave the way for yield-generating crypto products, aligning regulated offerings with Ethereum’s native staking ecosystem. Analysts note that such integrations could enhance the appeal of ETH ETFs by enabling passive income for investors, a feature currently absent in most traditional crypto products [1].

In parallel, institutional players are expanding access to staked assets through new products. CoinShares launched a staked SEI exchange-traded product (ETP) earlier this week, targeting European institutional investors seeking regulated exposure to layer-1 tokens [1]. Concurrently, Canary Capital filed for a U.S.-listed staked SEI ETF, marking the asset’s entry into American markets. Sei Network, the blockchain behind the SEI token, highlighted that these developments accelerate global access to its ecosystem, with potential benefits for liquidity and token performance as traditional capital flows into staked versions of the asset [1].

The broader market impact of these moves underscores growing institutional confidence in crypto. By packaging staking returns into regulated vehicles like ETFs and ETPs, major players are reducing barriers for traditional investors [1]. The fact that newer tokens like SEI are gaining traction with institutions highlights a market increasingly open to innovation. Analysts predict that this momentum could lead to deeper liquidity, greater market stability, and sustained long-term growth for crypto assets, provided regulatory clarity and investor demand continue to align [1].

Source: [1] BlackRock Hits $20B in Crypto ETFs, SEI ETPs Surge, [https://coinfomania.com/blackrock-hits-20b-in-crypto-etfs-sei-etps-surge]