BlackRock’s head of digital assets, Robbie Mitchnick, spoke at the Digital Asset Summit in New York City on March 20, 2025. He described the firm’s Ether (ETH) exchange-traded fund (ETF) as a success but noted that it falls short without staking. “A staking yield is a meaningful part of how you can generate investment return in this space,” Mitchnick said.
He pointed out that none of the Ether ETFs at launch included staking, which is a significant opportunity for improvement. However, Mitchnick stressed the complexity of adding staking to Ether ETFs. “It’s not as simple as a new administration just green-lighting something, and then boom, we’re all good, off to the races,” he explained.
Staking was introduced to the Ethereum network in December 2020 as part of its transition from a proof-of-work to a proof-of-stake consensus mechanism. By February 2024, staking accounted for 25% of the cryptocurrency’s circulating supply, offering a yield rate between 2% and 7% annually. However, staking ETH carries risks, including slashing penalties that could deter traditional investors.
Ethereum co-founder Joseph Lubin also spoke at the summit, addressing the shifting narratives around Ethereum.
Staking challenges in Ether ETFs
He argued that the broader narrative should focus on meaningful applications rather than theoretical discussions.
Mitchnick noted that explaining Ethereum to institutional investors often requires simplifying the message. “At the Second-grade level, it’s a technology innovation story,” he said. Once you get beyond that, it does get a little more vast and complicated.
It’s about being a bet on blockchain adoption and innovation.”
BlackRock has pitched Ethereum to investors as a bet on the positive trends of tokenization, stablecoin adoption, and decentralized finance. According to data, ETH ETFs hold a total value of $7 billion as of March 20, with cumulative inflows of $2.5 billion. However, there has been a recent outflow of $358 million in the past 11 days, reflecting the broader struggles in the cryptocurrency market.
The conversation at the Digital Asset Summit highlighted both the successes and the challenges facing Ethereum ETFs. While they are considered a significant step forward for digital asset investment, the absence of staking remains a notable limitation. As the industry continues to evolve, integrating staking features could potentially unlock new levels of investor activity and market growth.
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