ETF Filings: BlackRock Seeks Staking Approval for Spot ETH ETF
The Nasdaq has filed a regulatory request (19b-4) to enable BlackRock’s iShares Ethereum Trust (ETHA) to include staking functionality.
Adding staking would allow ETHA to generate yield by using its underlying Ethereum coins to validate blockchain transactions and collect rewards.
This U.S. Securities and Exchange Commission filing is the latest in a series where fund providers, including Fidelity, Grayscale, and 21Shares, seek permission for proactive staking in their spot Ethereum ETFs.
Recent Surge in ETH ETF Inflows
Ethereum funds recently experienced a record nine-day streak of investment, amassing approximately $2.3 billion in net inflows.
On Wednesday alone, these funds recorded a net inflow of $726.6 million, with ETHA contributing nearly $500 million.
Regulatory Timeline and Fund Success
While the SEC has until April (but analysts doubt this interval) to formally decide on ETHA’s staking proposal, broader applications have a final submission deadline in late October.
BlackRock’s ETHA has dominated the Ethereum ETF category, generating over $7 billion in net inflows.
The fund recently traded just below $26, up nearly 1%.
Volatility and Approval Expectations
Analysts predict staking feature approval is likely delayed until at least 4Q25, despite current market enthusiasm among ETH funds.
Staking remains an active area of regulatory review, with numerous applications already pending.
Debate and Regulatory Hurdles
The inclusion of staking functionality is controversial, with supporters citing potential return enhancements while critics worry about security risks, operational risks and market manipulation.
Prospectuses for ETHA and other major ETH funds explicitly stated avoidance of staking, a disclaimer the proposed rules change aims to revise.
