BlackRock has chosen Galaxy Digital as one of the validators for its new staked Ethereum exchange-traded fund (ETF), marking another step in the growth of institutional crypto investing.
The fund, called the iShares Staked Ethereum Trust ETF, is designed to give investors exposure to Ethereum while also earning rewards through staking. Staking allows investors to earn extra returns by helping secure the Ethereum network.
Galaxy Digital is one of several firms selected to handle this process. As a validator, it will help manage and stake the ETF’s Ethereum holdings, which are expected to generate monthly rewards for investors.
The ETF will stake a large portion of its Ethereum through institutional validators like Galaxy, along with other firms. These rewards will then be shared with investors, making the product more attractive compared to traditional crypto funds.
Data shows that the fund has already attracted strong interest. It holds hundreds of millions of dollars in assets, with a large share of that amount already staked in Ethereum.
BlackRock’s move highlights growing demand for crypto products that offer both price exposure and income. By working with experienced firms like Galaxy Digital, the company aims to provide a more secure and reliable way for investors to earn returns from digital assets.
This development is part of a wider trend where major financial institutions are expanding into crypto, combining traditional investment tools like ETFs with blockchain-based technologies such as staking.