BlackRock has engaged with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force to explore the regulatory landscape for staking within crypto exchange-traded products (ETPs) and the broader implications of tokenizing traditional securities.
This meeting indicates a significant shift towards integrating blockchain technologies into mainstream financial practices.
A memo released by the SEC on May 9 revealed that BlackRock seeks to discuss the potential for incorporating staking into ETPs.
BlackRock Considers Staking Essential for Ethereum ETFs
BlackRock has maintained that Ethereum-based ETFs would be notably more robust if they included staking options.
Staking enables users to commit their tokens to support blockchain functions in exchange for rewards, a fundamental aspect of proof-of-stake networks such as Ethereum and Solana.
BlackRock’s advocacy for this feature is not isolated; the New York Stock Exchange proposed a regulatory amendment earlier this year to permit staking services for Grayscale’s spot Ether ETFs.
While the SEC has postponed its final decision on this issue, an approval could unlock opportunities for staking-enabled ETFs across various blockchain platforms, including Solana.
Discussions also touched on tokenization, or the process of converting traditional financial instruments like stocks and bonds into blockchain-compatible tokens.
Tokenized securities offer numerous benefits, including 24/7 trading, accelerated settlements, and lower operational costs relative to conventional financial systems.
BlackRock met with the SEC Crypto Task Force on May 9, sought guidance on staking, tokenization, ETF approval standards, and options on ETFs. pic.twitter.com/GSKgJnikq1
— db (@tier10k) May 9, 2025
BlackRock currently oversees BUIDL, a tokenized fund linked to U.S. Treasury assets, boasting a market cap of $2.9 billion, the largest in its category.
Competitors in this arena include Franklin Templeton’s BENJI fund, while Robinhood is reportedly considering tokenized securities and is developing a blockchain solution to enable European retail users to trade U.S. stocks.
As institutional entities call for clearer regulations, ongoing discussions may significantly influence the intersection of blockchain technology and traditional financial markets.
BlackRock’s Bitcoin ETF Outpaces Gold Competitor
BlackRock’s spot Bitcoin ETF (IBIT) has achieved $6.96 billion in net inflows since the beginning of 2025, surpassing the SPDR Gold Trust (GLD) to become the sixth most popular ETF based on inflows.
The GLD, recognized as the world’s largest physically backed gold ETF, slipped to seventh place, recording $6.5 billion in net inflows as of Monday.
Despite a recent downturn in Bitcoin’s price—down over 10% from its January high—investors remain optimistic about the cryptocurrency’s long-term value.
Conversely, gold has experienced gains of more than $3,000 this year amid rising inflation concerns, global trade issues, and geopolitical tensions.
Eric Balchunas, senior ETF analyst at Bloomberg, remarked on X that the strong inflows into IBIT are “a really good sign for the long term” and reinforce forecasts that Bitcoin ETFs could eventually command three times the capital of their gold equivalents.
$IBIT took in another half a billion yest, extending inflow streak to 15 days and is now 6th in YTD flows, passing $GLD which is notable bc IBIT is only up 4% vs GLD having the run of its life. To take in more cash in that scenario is really good sign for long term, and inspires… pic.twitter.com/9HWqYxtyJ4
— Eric Balchunas (@EricBalchunas) May 6, 2025
While spot Bitcoin and Ethereum ETFs have received regulatory approval, the SEC has yet to sanction any ETF featuring staking functionality—an option already available in markets like Canada and Europe.
In a related movement, the Crypto Council for Innovation—backed by prominent firms such as a16z crypto, Consensys, and Kraken—has urged the SEC for clearer guidelines regarding staking.
Currently, more than 70 crypto ETF applications await a decision from the SEC, according to Bloomberg.
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