U.S. SEC Reviews BlackRock's Ethereum ETF Staking Plan, Delays Grayscale's Litecoin ETF

The U.S. Securities and Exchange Commission (SEC) is now reviewing a proposal by BlackRock to allow Ethereum staking within its iShares Ethereum Trust ETF.

This means investors might soon be able to earn rewards (staking)directly from their Ethereum ETF holdings, a big shift in how crypto ETFs could work.

The request was filed by Nasdaq, following similar proposals from 21Shares and Grayscale, showing that more traditional finance companies want to offer staking options inside crypto ETFs.

This move is being seen as a more open attitude from the SEC, especially since Donald Trump returned to office in January 2025. Under the previous Biden administration, the SEC approved spot Bitcoin and Ethereum ETFs, but did not allow staking features.

Also on the same day, the SEC:

- Delayed its decision on Grayscale's Litecoin ETF until October 10

- Approved a new rule that allows ETF in-kind creation and redemption, a process that makes it easier for big institutions to handle ETF shares, adding another sign of growing support for crypto ETFs.