BlackRock files for staking in its iShares Ethereum Trust (ETHA), aiming to generate yield for investors.
The SEC has acknowledged the filing, with a decision expected by Q4 2025 or April 2026.
Staking could enhance Ethereum ETF appeal, potentially driving institutional adoption and liquidity.
BlackRock, the world’s largest asset manager, has filed with the U.S. Securities and Exchange Commission (SEC) to add staking capabilities to its iShares Ethereum Trust (ETHA), a spot Ethereum exchange-traded fund (ETF). This move, announced via a Nasdaq 19b-4 filing on July 16, 2025, aims to allow ETHA to stake a portion or all of its Ethereum holdings, offering investors additional yield through Ethereum’s proof-of-stake consensus mechanism. The proposal has sparked significant interest among crypto investors, as it could bridge traditional finance with decentralized finance (DeFi) yields.
BlackRock’s filing seeks to enable ETHA to stake Ether directly or through trusted providers, with staking rewards treated as fund income, potentially yielding around 3% annually per ETH. This follows the SEC’s May 2025 guidance classifying staking rewards as earned income, not securities transactions, easing regulatory hurdles for such products. The filing, acknowledged by the SEC on July 29, opens a 21-day public comment period, with a decision expected by Q4 2025, though the final deadline extends to April 2026.
The iShares Ethereum Trust, launched in July 2024, has already amassed over $7.9 billion in assets under management, holding more than 2.02 million ETH as of July 17. Staking integration could enhance its appeal by offering investors exposure to Ethereum’s price movements alongside passive income, a feature absent in current U.S. Ethereum ETFs. “This staking isn’t about price speculation. It’s about alignment, incentives, governance, and yield,” noted Çağrı Yaşar on X, emphasizing the strategic importance of institutional participation in Ethereum’s network security.
BlackRock just got the green light to include staking in its Spot Ethereum ETF.This isn’t a minor regulatory checkbox. It’s the SEC handing institutions a key. Not just to Ethereum’s price action, but to its engine.Because staking isn’t about price speculation. It’s about… pic.twitter.com/cHo2LvdRo5
— Çağrı Yaşar (@Artualist) July 29, 2025
Other asset managers, including Fidelity, Grayscale, 21Shares, and Franklin Templeton, have also filed for staking in their Ethereum ETFs, with earlier submissions dating back to March 2025. However, BlackRock’s late filing has reignited debate over the SEC’s bulk approval process, with smaller issuers like VanEck and 21Shares advocating for a first-in, first-out approach to prioritize early filers. Crypto researcher Noelle Acheson highlighted competitive concerns, stating, “The bulk decision policy makes it harder for the little guy to offer something new.”
Market implications are significant, as staking-enabled ETFs could attract billions in institutional capital by simplifying access to DeFi yields. Analysts predict Ethereum’s price could reach $4,200–$5,000 in the next rally phase, driven by increased institutional participation and reduced circulating supply due to locked staked ETH. However, risks remain, including custody protocols and potential IRS tax uncertainties for staking rewards, which could impact investor adoption.
BlackRock’s push for staking in its Ethereum ETF marks a pivotal step toward integrating DeFi yields into traditional finance, potentially reshaping investor access to Ethereum. A favorable SEC decision could catalyze broader adoption of staking-enabled ETFs, boosting Ethereum’s market position. Investors should monitor updates as the SEC’s Q4 2025 decision looms, with implications for both yield opportunities and Ethereum’s long-term value proposition.
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, investment, or financial advice. Readers should conduct their own research before making investment decisions. We use AI to help us research and enhance the text or visual aids, which are then edited by our team.
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