BlackRock is actively negotiating with the SEC regarding the potential implementation of staking in Ethereum ETFs and asset tokenization. These initiatives could transform the cryptocurrency finance market.
Features of Staking in Ethereum ETFs
Staking in Ethereum ETFs was the main topic of discussion between BlackRock and the SEC's digital asset task force. BlackRock's Head of Digital Assets, Robert Mitchnick, noted that staking is essential for competitiveness compared to direct ETH holdings. The SEC's official memo mentions that BlackRock suggested *“considerations for ETPs with staking capabilities.”* Such changes may require a re-evaluation of the 1940 Act governing fund structures.
The Importance of Asset Tokenization
BlackRock also presented its asset tokenization strategy, including the recently launched BlackRock USD Institutional Digital Liquidity Fund (BUIDL), one of the first examples of tokenized securities. Tokenization was presented as a way to enhance liquidity and transparency in capital markets. During the meeting, BlackRock inquired about the possibilities of tokenization under existing 1933 and 1940 Act regulations.
Prospects for Crypto ETFs and New SEC Approaches
The meeting also addressed options for crypto ETFs, especially after the SEC approved options trading for spot Ethereum ETFs. Technical issues, such as position limits and margining, were discussed. Notably, the SEC's approach is shifting towards more structured engagements with industry players, suggesting a new wave of collaboration in the digital asset space.
BlackRock's initiatives for staking and tokenization in crypto ETFs show the financial industry's growing interest in integrating blockchain technologies. While formal approval for staking has not yet been granted, these discussions indicate an increasing likelihood of bringing these ideas to fruition in the future.
