#BlackRock has applied for permission to stake in its spot #etf on #Ethereum . This could be a turning point for institutional interest in ETH — with $5.5 billion flowing into ether funds since the beginning of the year, including more than $3.3 billion in the last three months alone.
The most powerful signal from BlackRock
On July 17, Nasdaq filed a 19b-4 application with the SEC on behalf of BlackRock to amend the rules to allow staking of ETH underlying the spot ETHA ETF. This will allow the world's largest asset manager to delegate some or all of the ether through third-party staking providers.
Although similar applications have already been filed by Franklin Templeton, Grayscale, Fidelity and 21Shares, it is BlackRock's move that is seen as the main indicator of possible approval. Historically, the SEC has rejected only one ETF out of more than 500 BlackRock applications.
Changing climate in the SEC and the influence of the Trump administration
The political backdrop also contributes. With the arrival of the new administration and the softening of the SEC's position, the regulator has dropped its staking claims against Coinbase and Kraken. This paves the way for ETFs containing assets with yield mechanisms.
In early 2024, all issuers were forced to remove staking from their applications under pressure from the SEC, led by Gary Gensler. Now, amid political and regulatory changes, the likelihood of approval has increased dramatically.
Nevertheless, Bloomberg analyst James Seyffart warned:
"Staking has not yet been approved. Other applicants have deadlines at the end of October. BlackRock has until April 2026, but we expect a decision as early as Q4 2025."
Potential barriers are not from the SEC
According to Seyfart, the main obstacle now is not the SEC, but the US Internal Revenue Service (IRS). It may stand in the way of launching yield-bearing ETF products.
He did not provide details, but market participants assume that it is about the taxation of staking income within a public fund.
ETH doubled in three months
Amid the news, the price of $ETH rose by almost 4% per day and reached $3,420. Over the past three months, the asset has added 114%, turned positive since the beginning of the year, and updated its 2024 high. ETH is growing amid inflows into ETFs, interest from corporations, and expectations of the altseason — $XRP , $SOL , and BNB are growing along with it, while bitcoin is showing a moderate decline.
According to Seyfart, $5.5 billion has flowed into ether ETFs since launch, including $3.3 billion since mid-April. This is still less than the $18 billion in bitcoin funds over the same period, but the dynamics show a rapid increase in interest in ETH.
If the SEC allows staking, the inflow could accelerate — and ether will finally become entrenched as the second institutional asset after BTC.
