BlackRock and SEC in High-Stakes Talks to Add Staking to Ethereum ETFs

According to sources from Sosovalue, BlackRock is planning to grow its role in Digital assets by holding important talks about the crypto ETFs with the U.S. Securities and Exchange Commission (SEC).

The biggest asset manager in the world, BlackRock, has recently met with the SEC’s Crypto Task Force to talk about adding staking features and options trading to Crypto exchange-traded products (ETPs).

A document released on May 9 confirmed that these discussions took place, and this might be a major turning point for the crypto industry.

BlackRock’s Head of Digital Assets, Robert Mitchnick, attended this discussion, which was aimed at addressing technical and regulatory challenges that are involved in adding staking to spot Ethereum ETFs.

He explained that it is a complicated process, but if these issues get solved, then it could bring huge improvement and growth for the institutional crypto products.

Staking Could Unlock Full Potential of Ethereum-Based Crypto ETFs

Staking is still one of the most debated and highly anticipated features for crypto ETFs, particularly those that are linked to Ethereum. According to Sosovalue, at the time of the meeting, Ethereum (ETH) was valued at $2,492. It showed that it is performing well without staking integration in these ETF products.

BlackRock’s team suggested plans that allow staking in crypto Exchange Traded Funds, an idea that could make Ethereum-based products more attractive for investors who want to earn rewards.

Grayscale and Fidelity, two major companies, have also asked for changes in rules for adding staking to their Ether ETFs. Grayscale is still waiting for the SEC’s decision after being delayed in April.

Though Crypto exchange-traded funds are becoming more popular, they still feel incomplete without staking, especially since Ethereum uses a Proof-of-Stake system.

If staking gets added, then it could increase the returns and make these products more attractive to big investors.

SEC Opens the Door to Options

Along with staking, BlackRock’s team and SEC officials talk about the rules for option trading on crypto ETFs. They discussed topics like position limits, how much liquidity is needed, and general regulatory guidelines.

The SEC has given approval for options trading on Spot Ethereum from BlackRock, Grayscale, and Bitwise in April. This shows that they are becoming more open to new ideas in the crypto space.

As Ethereum ETFs are now allowing options and the SEC is considering staking, the foundation is set for an investment environment that is more diversified and flexible, focused on crypto ETFs.

Tokenization Gains Ground Among Regulators

In addition to crypto ETFs, the meeting also discussed tokenization, which is a trend that could change the financial markets.

BlackRock shared its experience with tokenized securities, particularly its $2.9 billion BUIDL fund, which tokenized U.S. federal debt.

Tokenization allows faster settlement, 24/7 trading, and low transaction costs in comparison with traditional financial systems.

Other companies like Franklin Templeton, with their BENJI fund and Robinhood, are looking for tokenization.

Robinhood is reportedly developing a Blockchain that would allow European users to trade tokenized U.S. securities; this highlights how fast this trend is growing.

Changing Regulatory Tone Under New Leadership

The SEC’s approach towards digital assets has changed as Paul Atkins replaced Gary Gensler in January. While Gensler frequently warned that crypto was full of fraud and scams, Atkins has taken a much more positive approach, saying that he sees huge benefits in the sector.

Commissioner Hester Peirce, who is known for backing supportive crypto regulations, is leading the SEC’s crypto task force.

The task force has organised several roundtable meetings this year and is scheduled to meet again on Monday to talk about the tokenization and development of digital financial markets.

Conclusion 

The SEC might soon allow staking and more options trading for crypto ETFs. As per Sosovalue, BlackRock is leading the talks, and ETH and SOL are trading around $2,492 and $173.93, respectively. These developments might help to boost investors’ interest and push digital finance into a new era. 

FAQs

1. When was the BlackRock and SEC Crypto Task Force meeting?

The meeting was held on Friday, May 9, 2025.

2. What was the main intention behind the May 9 meeting?

The meeting was held to discuss regulatory changes for allowing staking in crypto ETFs and advancing the tokenization of traditional assets.

3. How can staking in Crypto ETFs help BlackRock?

Staking in crypto ETFs can help BlackRock attract investors, improve performance, increase demand, and boost its innovation.

4. Which other companies, along with BlackRock, are asking for SEC approval for staking in Crypto ETFs?

Grayscale and Fidelity companies have also joined the race to add staking features to their Ethereum ETFs.

5. How will tokenization help BlackRock?

Tokenization can help BlackRock improve access and liquidity, reduce costs, enhance transparency, and lead in digital assets.

Glossary

Crypto ETFs- An investment fund that holds cryptocurrencies like Bitcoin or Ethereum and trades on traditional stock exchanges.

Staking-  Locking your crypto to help a blockchain work, you earn rewards for it.

Tokenization- Making a digital version of a real thing (like a share or gold) using blockchain.

Options Trading- A deal that lets you choose to buy or sell something later at a fixed price.

Proof-of-Stake-  A system where people use their crypto to help run a blockchain and get rewards.

Sources

Crypto Briefing 

Coin Telegraph

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