SEC considers staking proposal for BlackRock Ethereum ETF

The U.S. Securities and Exchange Commission (#SEC ) has confirmed receipt of a proposal from Nasdaq, allowing BlackRock's spot Ethereum ETF (ETHA) to perform staking. If approved, this would be a significant step, allowing the world's largest asset manager to participate in Ethereum's Proof-of-Stake mechanism and share staking rewards with shareholders.

Timeline and Context

According to SEC filings, the agency may make a decision within 45 days, but the timeline may be extended. In fact, the SEC has previously delayed similar proposals from Bitwise and Grayscale in recent months.

This proposal allows #BlackRock⁩ to use staking service providers to generate income for the fund. The income generated from staking rewards will be considered income for the fund.

Since its launch a year ago, spot Ethereum ETFs have attracted $9.4 billion in net inflows. BlackRock's ETHA fund alone contributed $9.5 billion. However, the lack of staking rewards has been viewed as a limitation. Therefore, SEC approval of this proposal would further enhance the appeal of Ethereum ETFs to investors. #anhbacong