BlackRock is lining up a staked Ethereum exchange-traded fund even as Vitalik Buterin warns that institutions buying the crypto represents an existential risk to the asset.
The blockchain’s co-founder issued that warning just as a Delaware filing circulated on Wednesday. The filing reveals that BlackRock has registered its iShared Staked Ethereum Trust, according to a post by Bloomberg Intelligence ETF analyst Eric Balchunas.
The registration isn’t a formal application with the Securities and Exchange Commission. Still, it is a signal that the world’s largest asset manager will submit a fresh ETF bid, one with a baked-in Ethereum staking product.
The SEC approved Ethereum ETFs earlier this year, but those products did not include staking rewards. In May, the SEC issued guidance that clarified that certain staking products aren’t securities, paving the way for staking ETFs.
BlackRock’s bid comes amid Buterin’s alarms about large asset managers accumulating Ethereum. The Ethereum creator warned that a high concentration of Ethereum ownership on Wall Street could distort the blockchain’s governance and create centralised chokepoints.