-BlackRock has filed an application to modify its exchange-traded fund in Ethereum to include storage rewards.
-This move will allow investors to achieve a return in addition to exposure to the price $ETH .
-If approved, it could set a precedent for cryptocurrency exchange-traded funds backed by staking in the United States.
Reports have indicated that BlackRock has filed an application to modify its investment fund in Ethereum to include staking, according to new documents from the U.S. Securities and Exchange Commission. If approved, BlackRock's fund will become the first investment fund in Ethereum in the United States to offer staking rewards.
This application represents a significant shift in institutional strategy towards digital currencies, indicating an increasing interest in digital assets that generate returns.
Staking enables investors to earn passive income by helping to verify Ethereum transactions. Currently, no approved investment fund in Ethereum in the United States includes a staking function.
Adding staking will allow investors to benefit from price increases and staking yields, which typically range between 3-5% annually.
It will also reduce the circulating supply of Ethereum, as $ETH of the staked amount is locked, which could enhance the asset's deflationary dynamics.
Overall, this development represents a key milestone. Staking investment funds can bridge the gap between traditional yield-bearing products and exposure to digital currencies.
Other issuers, including Grayscale and Franklin Templeton, have submitted similar proposals. The SEC has yet to approve any of them.
If regulators approve BlackRock's proposal, it could set a precedent for broader innovation in Ethereum investment funds.
The timeline for a decision remains unclear. However, the market is already reacting to the increasing likelihood of digital currency investment funds that support staking.
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