18.07.2025 08:43
Nasdaq submitted a crucial regulatory filing on Thursday, proposing a significant enhancement to BlackRock's iShares Ethereum Trust ETF (ETHA). This 19b-4 rules change request, filed with the U.S. Securities and Exchange Commission (SEC), seeks to integrate staking functionality into the ETF. This addition would allow the fund to generate yield by actively participating in Ethereum's transaction validation process, leveraging its holdings of ETH to earn rewards.
Launched last July, ETHA now stands to benefit significantly from this potential upgrade. The inclusion of staking represents a major development for the burgeoning Ethereum ETF market, following a remarkable nine-day period that saw a staggering $2.3 billion poured into similar funds. This surge underscores the intense investor interest in accessing the potential rewards of Ethereum staking through regulated investment vehicles.
BlackRock's move is not an isolated one. Several other prominent firms, including Fidelity, Grayscale, and 21Shares, have also submitted similar proposals to the SEC, seeking to incorporate staking into their own Ethereum-focused ETFs. The SEC faces a busy period ahead, with decisions on various staking-related requests expected in October. These include pending applications from Cboe and the NYSE, while BlackRock's filing faces an April 2026 deadline.
However, market analysts, such as Bloomberg's James Seyffart, express optimism for a quicker resolution. Seyffart anticipates approval for staking functionalities in Ethereum ETFs by the fourth quarter of 2025, despite the official April 2026 deadline for BlackRock's proposal. He highlighted the numerous pending applications for similar ETH staking ETFs already under review, indicating the SEC's likely familiarity with the subject matter.
The integration of staking remains a contentious issue. While proponents highlight the potential for increased returns through yield generation, concerns regarding security risks and the possibility of market manipulation persist. Initial prospectuses for ETHA and other existing Ethereum ETFs specifically excluded staking capabilities, highlighting the significant regulatory hurdles overcome by these recent filings.
