BlackRock plans to add staking to its $7.9B ETH ETF, aiming to boost investor returns and strengthen Ethereum exposure.
ETH ETFs saw $726M in daily inflows led by BlackRock, showing strong investor demand ahead of potential staking ETF approval.
With Coinbase as its staking partner, BlackRock is pushing to make ETHA more rewarding and efficient for long-term holders.
BlackRock has filed to update its iShares Ethereum Trust (ETHA) to include staking, signaling a major shift in crypto ETF strategy. The update, submitted by Nasdaq to the SEC under Rule 19b-4, proposes staking “all or a portion” of the Trust’s ETH through trusted providers. If approved, this change could significantly boost returns for ETHA investors by allowing the fund to earn rewards directly from the Ethereum network.
ETHA is the largest Ethereum ETF in the U.S., with over $7.9 billion in assets under management as of July 17. The move to add staking follows a surge in investor demand. On July 17 alone, ETH ETFs saw inflows of $726.74 million. BlackRock’s ETHA led the pack with $499 million in net flows. So far in July, Ethereum ETFs have pulled in $2.27 billion in total, marking their strongest month since inception.
ETF Staking Gains Momentum
The SEC recently approved the first staking ETF in the U.S.—the REX-Osprey Solana Staking ETF. However, that approval came under a different rule framework, the Securities Exchange Act of 1940. BlackRock’s proposal falls under the older 1934 Act, which has not yet approved any staking ETFs.
Still, industry analysts remain optimistic. Bloomberg’s James Seyffart noted that many staking applications are already in progress. While ETHA’s proposal may not see final approval until 2026, approval for earlier applications is expected as soon as Q4 2025.
Coinbase Positioned as Key Partner
BlackRock plans to use Coinbase as both custodian and staking agent. Nasdaq clarified the Trust won’t share risk or pool ETH with others. According to Nasdaq Senior Counsel Sun Kim, staking would improve returns, help track ETH more accurately, and enhance ETF efficiency.
Moreover, ETH has rallied in the broader crypto market, now trading near $3,400. Though still below its 2021 high of $4,878, Ethereum’s growing utility and institutional demand could push it higher.
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