BlackRock has reportedly held a closed-door meeting with the U.S. Securities and Exchange Commission (SEC) to advocate for the inclusion of Ethereum staking in spot ETFs and to accelerate efforts in tokenizing real-world financial assets.
The meeting, held in early July, was conducted with the SEC’s Crypto Task Force, as the Wall Street heavyweight seeks regulatory clarity and expansion of Ethereum ETF functionality.
BlackRock: Ethereum ETFs “Less Perfect” Without Staking
During the session, Robert Mitchnick, Head of Digital Assets at BlackRock, emphasized that Ethereum ETFs lacking staking features are “less perfect,” noting that investors are currently unable to benefit from staking rewards available to native ETH holders.
Mitchnick described staking support for spot ETH ETFs as a “step change upward” for the investment product class, while acknowledging the regulatory and operational complexities involved. If permitted, staking would allow ETH ETFs to generate passive yield through on-chain validation, enhancing fund attractiveness and performance.
Regulatory Barriers and Industry Lobbying
Under SEC Chair Gary Gensler, the agency has previously opposed staking within regulated ETF structures, citing concerns around classification and investor risk. However, mounting pressure from asset managers and exchanges may be prompting a re-evaluation.
Competitors such as Fidelity and Grayscale have also lobbied for the inclusion of staking features. In February 2025, the NYSE filed a proposed rule change to enable staking within Grayscale’s Ethereum Trust, which remains under SEC review.
If approved, these changes could mark a significant shift in U.S. policy regarding crypto-based yield generation within registered investment vehicles.
BlackRock’s Tokenization Push Gains Traction
In addition to staking, BlackRock presented its expanding efforts in the tokenization of real-world assets (RWAs). The firm highlighted its $2.9 billion BUIDL fund, a tokenized U.S. Treasury product, as a model for blockchain-based financial instruments offering faster settlement times, reduced transaction costs, and 24/7 market access.
The initiative aligns with BlackRock’s broader digital strategy, aiming to modernize legacy asset classes through public and permissioned blockchain networks.
This movement is not unique to BlackRock. Rival financial players such as Franklin Templeton with its BENJI fund, and Robinhood’s blockchain project targeting tokenized U.S. equities for European users, illustrate a growing institutional appetite for blockchain-integrated finance.
SEC Decision Pending
While the SEC has yet to publicly respond to the meeting’s discussions, BlackRock’s continued engagement with regulators reflects intensifying momentum to blend decentralized finance (DeFi) mechanisms with traditional asset management.
The outcome of these lobbying efforts could have lasting implications for the evolution of Ethereum ETFs, digital asset regulation, and the broader acceptance of blockchain infrastructure in global finance.
Disclaimer: This article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency markets are volatile and involve significant risk. Always do your research before making investment decisions.
