By Binance Crypto News | July 17, 2025
In a strategic shift that could reshape the Ethereum ETF market, BlackRock has filed an amended application for its iShares Ethereum Trust (ETHA) with the U.S. Securities and Exchange Commission (SEC), seeking approval to stake Ethereum (ETH) held in the trust.
This move would allow BlackRock to generate yield through Ethereum’s proof-of-stake mechanism — a game-changer for institutional investors looking for both price exposure and passive income through staking rewards.
🔎 What's in the Filing?
The amended 19b-4 filing, submitted in coordination with Nasdaq, includes a request to permit staking all or a portion of the Ethereum held in ETHA via one or more trusted staking providers. The generated staking rewards would be treated as income and reflected in the trust’s net asset value (NAV), enhancing the fund’s total return potential.
Currently, ETHA does not engage in staking and must sell ETH to cover expenses, which dilutes the ETH per share over time. This filing signals a major shift in BlackRock's strategy — moving from a pure holding model to a yield-optimized structure.
$ETH 💡 Why This Matters
If approved, ETHA would become the first U.S. spot Ethereum ETF to offer staking rewards, following similar filings by competitors like Fidelity, Grayscale, Franklin Templeton, and 21Shares.
Key highlights:
Investor Yield Potential: Ethereum staking yields currently range between 3%–7% annually.
Competitive Advantage: ETHA already offers one of the lowest sponsor fees (0.25%, and 0.12% on first $2.5B).
Market Demand: Spot ETH ETFs have seen massive inflows since approval in May 2025 — over $4.6 billion in ETHA’s NAV and 5 million ETH now held collectively by spot ETFs.
📈 Market Reaction & Outlook
The market responded positively to the news, with Ethereum price holding strong above $3,000, and ETHA seeing a record $499 million in daily inflows recently. Analysts believe this filing strengthens BlackRock’s position in the ETF race and could push competitors to accelerate their own staking integration efforts.
However, regulatory uncertainty remains. The SEC has yet to approve staking for any U.S.-listed spot ETH ETF. Previous delays have affected similar requests from Grayscale and others. Still, BlackRock’s reputation and collaboration with Nasdaq may improve the odds of success.
🔮 What's Next?
All eyes are now on the SEC. If the staking feature is approved:
ETHA becomes a yield-generating Ethereum ETF, attracting long-term institutional capital.
Ethereum's staking demand increases, further reducing liquid ETH supply.
Other ETF providers may rush to adopt staking, triggering a staking ETF arms race.
For now, investors and the crypto community alike await the next move in what could become a defining moment for Ethereum finance.
🧠 Final Thought:
Staking inside an ETF unlocks a new frontier: passive crypto income for traditional investors — and BlackRock wants to lead that charge.
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